Consumer sentiment tops forecasts at 48.1 but stays below August's level
The final September reading revises the preliminary 47.8 figure up by 0.3 points, though confidence remains far below August's 51.7.
Published
The University of Michigan's Consumer Sentiment Index came in at 48.1 for September, above the 47.5 economists expected. The final figure revises the preliminary reading of 47.8 upward by 0.3 points, according to Advisor Perspectives.
The preliminary report showed the decline was driven by a drop in both major subindexes: the Current Economic Conditions Index fell 1.9% to 50.9, and the Consumer Expectations Index fell 15.7% to 45.8, Advisor Perspectives reported. Year-ahead inflation expectations rose from 4.0% to 4.6% over the same period.
Joanne Hsu, the survey's director, said sentiment fell less than four index points for a second straight month, with declines among both Democrats and Republicans while independents were little changed, according to Advisor Perspectives. The preliminary 47.8 reading was the weakest since a record low in May and sat below the first percentile of the survey's history, while running 13.2% below year-ago levels, Trading Economics and Advisor Perspectives reported.
The weak sentiment readings sit alongside firmer data elsewhere in the economy. Retail and food-service sales rose 1.2% in August and were up 6.0% from a year earlier, while employers added 162,000 jobs with unemployment holding at 4.1%, according to Forum Nadlan USA. The final reading's beat against forecasts is only a modest bright spot: sentiment has now fallen for a second consecutive month from August's 51.7, keeping the trend in consumer confidence pointed lower even as other measures of household spending and the labor market hold up.