A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by slightly less than initially estimated in the month of September.
The report said the consumer sentiment index for September was downwardly revised to 100.1 from the preliminary reading of 100.8. Economists had expected the index to be unrevised.
Despite the downward revision, the final reading for September still reflects a notable increase from the final August reading of 96.2.
“Consumer sentiment remained at very favorable levels in September, with the Index topping 100.0 for only the third time since January 2004,” said Surveys of Consumers chief economist Richard Curtin.
He added, “Most of the September gain was among households with incomes in the bottom third, whose index value of 96.3 was the highest since November 2000.”
The report said the current economic conditions index climbed to 115.2 in September from 110.3 in August, while the index of consumer expectations rose to 90.5 from 87.1.
Curtin noted the single issue that was cited as having a potential negative impact on the economy was tariffs, with concerns about the negative impact of tariffs cited by nearly one-third of all consumers in September.
“Those that voiced negative views of tariffs also held much less favorable prospects for the economy and held inflation expectations that were 0.6 of a percentage point higher than those who didn’t mention tariffs,” Curtin said.
On the inflation front, one-year inflation expectations fell to 2.7 percent in September from 3.0 percent in August, while five-year inflation expectations dipped to 2.5 percent from 2.6 percent.