CHICAGO, Sept. 30 (Xinhua) -- The Consumer Sentiment Index released Friday by the University of Michigan (UM) Surveys of Consumers rose to 58.6 in the September 2022 survey, up from 58.2 in August but below last September's 72.8.
The Current Index rose to 59.7, up from 58.6 in August but below last September's 80.1. The Expectations Index rose to 58, unchanged from August and below last September's 68.1.
The one-year economic outlook continued lifting from the extremely low readings earlier in the summer, but these gains were largely offset by modest declines in the long-run outlook, said UM economist Joanne Hsu, director of the surveys.
The tentative slowdown in inflation last month has not, as of yet, translated to sustained improvements in how consumers feel about their financial situations, Hsu said. About 42 percent of consumers cited high prices eroding their living standards, down from a peak of 49 percent in July but more than double the 18-percent reading from a year ago.
Consumers expect this erosion to continue; while most consumers expect their incomes to rise over the next year, the median expected increase fell from 2.3 percent in August to 1.7 percent in September. At the same time, consumers expect continued strength in labor markets, with little change in expectations for the unemployment rate.
Consumers' outlook for inflation has continued to improve. It is unclear if these improvements will persist, as consumers continued to exhibit substantial uncertainty over the future trajectory of prices, likely due to conflicting signals in the economy, Hsu said. While gas prices fell over the last several months, food prices and core inflation have not substantively improved.
At the same time, while buying conditions for durables remained near its all-time low from June, concerns about the high prices of durable goods have started to ease. Still, 57 percent of consumers blamed high prices for worsening buying conditions for vehicles.
As conflicting information about prices continues to fuel consumers' uncertainty, consumers' attitude toward the economy is likely to remain relatively unstable in the months ahead, Hsu said.
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.
