Consumer sentiment improves slightly from August, inflation expectations moderate

Olivier Verriest

• September University of Michigan Consumer Sentiment (Final): 58.6 vs. 59.5 consensus and 59.5 prior estimate and 58.2 in August
• Expectations: 58.0 vs. 59.9 prior estimate and 58.0 in August.
• Current conditions: 59.7 vs. 58.9 prior estimate and 58.6 in August.
• Year-ahead inflation expectations: +4.7% vs. +4.6% prior. That's the lowest reading since last September.
• Median long-run inflation expectations, at 2.7%, fell below the 2.9%-3.1% range for the first time since July 2021.
• "Buying conditions for durables and 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 for business conditions," said Surveys of Consumers Director Joanne Hsu.
• "Inflation expectations are likely to remain relatively unstable in the months ahead, as consumer uncertainty over these expectations remained high and is unlikely to wane in the face of continued global pressures on inflation," she added.
• Earlier, PCE price index hotter than expected, suggesting Fed stays hawkish