The rise of consumer sentiment continues to be observed in the United States.
In late September, the mentioned indicator reached a mark that is a five-month high. The corresponding result is associated with an increase in optimistic sentiments regarding the prospects of the dynamic of the state of affairs in the space of the economic system of the United States. This vision of the scenarios of the future is largely because the Federal Reserve has begun to ease monetary policy.
The University of Michigan’s final September sentiment index rose to 70.1. It is worth noting that the previous reading of the corresponding indicator in the current month was 69. This figure for August was fixed at 67.9.
Currently, in the United States, consumers expect prices to rise by 2.7% in 2025. It is worth noting that in this case, an increase in the indicator is implied on an annual basis. It is also noteworthy that the pace of price growth expected by US consumers is the lowest since the end of 2020. Moreover, it is worth noting that in August, the consumer forecast provided for an increase in the mentioned indicator by 2.8%.
Also, US consumers expect inflation in the country to rise by 3.1% over the next five to ten years.
The mentioned sentiment directly depends on the Fed’s actions. The strengthening of optimistic expectations regarding the economic outlook against the background of the beginning of monetary easing by the central bank of the United States is an example confirming the mentioned thesis. Lowering the cost of borrowing improves consumers’ outlook on the economy in general and their personal finances in particular.
