U.S. Consumer Sentiment Improves in September

WASHINGTON (Reuters) – U.S. consumer sentiment improved in September amid subsiding inflation, although Americans remained cautious ahead of the November presidential election, according to a survey released on Friday.

The University of Michigan's preliminary reading on the overall index of consumer sentiment was 69.0 this month, showing an increase from a final reading of 67.9 in August. Economists surveyed by Reuters had forecast a preliminary reading of 68.5.

Joanne Hsu, Director of Surveys of Consumers, noted, "A growing share of both Republicans and Democrats now anticipate a Harris win." She added that, in line with differing views on the economic implications of a Harris presidency, partisan gaps in sentiment increased.

The survey was conducted prior to Tuesday's debate where Republican candidate Donald Trump faced off against Vice President Kamala Harris, the Democratic nominee for the Nov. 5 election.

Additionally, the survey showed that one-year inflation expectations fell for the fourth consecutive month to 2.7%, the lowest since December 2020, compared to 2.8% in August. The five-year inflation outlook increased slightly to 3.1% from 3.0% in the prior month.