U.S. consumer sentiment improved in September, a report showed Friday, although consumers’ view of their current conditions fell.
Reuters reported that the University of Michigan’s preliminary September consumer sentiment index reading was 84.4, up from from August’s final 82, said sources who saw the subscription-only report.
The median forecast of Wall Street economists polled by Reuters was for a reading of 84.
The survey’s index of current conditions fell to 95.7 in September from 103.8 in August, while consumer expectations rose to 77.1 from 68.0 in August.
Consumer spending accounts for about two-thirds of U.S. economic activity, but in recent years confidence measures have been a weak guide to actual spending.
Consumers’ expectations for increased inflation fell in September the report said, according to the sources.
The University of Michigan’s preliminary September reading on one-year U.S. inflation expectations was 3.1%, down from 3.8% in August.
Median expectations for inflation over a five-year horizon fell to 2.9% from 3.2% in August.