US consumer sentiment continued to rise in late September, reaching a five-month high on more optimism about the economy in the wake of the Federal Reserve’s interest-rate cut.

Key Takeaways The Michigan Consumer Sentiment Index increased to finish September at 70.1, its highest level since April.Inflation expectations fell again as the survey showed that consumers were noticing the slow down in the inflation rate.

One of the big puzzles of the last few years has been consumer sentiment. The US economy and stock market have outperformed virtually every global economy and market. Wages have grown nicely in the last few years. And yet, sentiment remains subdued. What gives?

US consumer sentiment continued to rise in late September, reaching a five-month high on more optimism about the economy in the wake of the Federal Reserve’s interest-rate cut. Further reductions in borrowing costs are helping to underpin consumers’ outlook on the economy and their personal finances.

U.S. consumer sentiment continued to rise in late September, reaching a five-month high on more optimism about the economy in the wake of the Federal Reserve's interest rate cut.

Ann Arbor, MI, September 27, 2024-Consumer sentiment rose 3.2% to 70.1 in September, according to final results from the University of Michigan Survey of Consumers. This represents a 3.4% increase year over year.

Increasing optimism is largely driven by positive views on the national economy over the next year. Consumer sentiment should improve overall in the months ahead.

Slowing inflation and the first interest-rate reduction by the Federal Reserve in four years gave Americans a little more confidence in the economy, but the outcome of the presidential election also weighed on their minds.