Consumer sentiment in the U.S. has improved by much more than anticipated in the month of September, according to a report released by the University of Michigan on Friday.
The report said the consumer sentiment index jumped to 100.8 in September from 96.2 in August. Economists had expected the index to inch up to 96.6.
The bigger than expected increase by the headline index came as the current economic conditions index surged up to 116.1 in September from 110.3 in August.
The index of consumer expectations also rose to 91.1 in September from 87.1 in August, reaching its highest level since July of 2004.
“While consumers were somewhat more likely to anticipate that the economic expansion would continue uninterrupted over the next five years, nearly as many expected another downturn sometime in the next five years,” said Surveys of Consumers chief economist, Richard Curtin.
He added, “The largest problem cited on the economic horizon involved the anticipated negative impact from tariffs.”
On the inflation front, one-year inflation expectations dipped to 2.8 percent in September from 3.0 percent in August, while five-year inflation expectations fell to 2.4 percent from 2.6 percent.