U.S. Consumer Sentiment rebounds below expectations in September

Consumer sentiment in the United States has recorded a modest improvement in September after sharply falling in August, according to a preliminary report released by the University of Michigan on Friday.
The report said the consumer sentiment index inched up by 71.0 in September from 70.3 in August, below economists’ expectations that suggested the index to rise to 72.2.
The increase came after the consumer sentiment index touched its lowest level since December 2011 in the previous month.
August’s steep falloff in consumer sentiment ended in early September, but the small gain still means that consumers expected the least favorable economic outlook in more than a decade.
The report also showed one-year inflation expectations up to 4.7 percent in September from 4.6 percent in August, while five-year inflation expectations were unchanged at 2.9 percent.
The uptick by the index came as the index of consumer expectations rose up to 67.1 in September from 65.1 in August. The report said the current economic conditions index edged down to 77.1 in September from 78.5 in August.
Consumers have initially reacted by viewing the rise in inflation as transitory, believing that prices will ease to stabilize or could even fall in the future. As a result, postponing purchases is looked upon as a viable strategy. This implies a slowdown of spending in the months ahead and a stronger rebound later in 2022.