US consumer sentiment rises from lowest level in one decade

By Ovunc Kutlu

ANKARA (AA) - US consumer sentiment increased early September, rising from its lowest level in almost a decade, according to data released by the University of Michigan on Friday.

The index of consumer sentiment has increased by 0.7 points to 71.0 in September, up from 70.3 in August when it marked its lowest level since December 2011, according to a survey compiled from around 500 consumers.

The index, which rates the relative level of current and future economic conditions, was expected to come at 72.0.

However, the index of current economic conditions fell by 1.4 points to 77.1 in September, from 78.5 the previous month.

The index of consumer expectations also rose by 2 points to 67.1, from 65.1, during that period, according to the data.

"The steep August falloff in consumer sentiment ended in early September, but the small gain still meant that consumers expected the least favorable economic prospects in more than a decade," Richard Curtin, the chief economist with Surveys of Consumers, said in a statement. "Some observers anticipated that the early August plunge in confidence would quickly disappear since it was driven by emotions."

"The decline in assessments of buying conditions for homes, vehicles, and household durables left all three near all-time record lows, with the declines due to spontaneous references to high prices," he added.

Many economic data point toward slower growth in consumer expenditures and purchases of housing to the end of 2021, according to Curtin.

The final September data for the indices will be released on Oct. 1 by the University of Michigan.