Chicago (USA) Oct 2: The University of Michigan (UM) Surveys of Consumers reported on Friday that its Consumer Sentiment Index rose to 72.8 in September from 70.3 in August, but remained below the pandemic peak of 88.3 in April and near the pandemic lows.
The Expectations Index increased to 68.1 from August's 65.1, below the pandemic peak of 83.5 recorded three months ago; and the Current Conditions Index rose to 80.1 from 78.5, below the April peak of 97.2.
Meanwhile, the proportion of households who expected to be better off financially in a year fell to 30 percent in September, the lowest level since August 2016; and favorable finances over the next five years fell to 44 percent, the lowest level in seven years. Expected annual gains in household incomes were 1.5 percent in September, one-third of the expected inflation rate. Real income gains were expected by 18 percent of all households in September, the lowest reading since February 2015.
Favorable views of buying conditions have plunged to half their level in the past year.
To be specific, favorable buying conditions for homes fell to 32 percent in September, down from last year's 65 percent; and favorable vehicle buying conditions fell to 30 percent from last year's 61 percent.
During the past five months, consumers have become much more concerned about rising inflation and slower wage growth and their negative impact on their living standards, said UM economist Richard Curtin, director of the surveys.
UM Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous U.S. an equal probability of being selected. Interviews are conducted throughout the month by telephone.
Source: Xinhua