U.S. Consumer Confidence Ticks Up as Economic Outlook Brightens

By Ed Frankl

U.S. consumer confidence rose for a second-straight month as expectations for the economy climbed, with respondents more strongly anticipating Kamala Harris to win the upcoming presidential election.

The University of Michigan's index of consumer sentiment rose to 70.1 at the end of this month, from 67.9 in August, and above the mid-September reading of 69.0. Economists had expected the survey to be at 69.3, according to a poll compiled by The Wall Street Journal.

The rise was seen across all education groups and political affiliations, the survey's director Joanne Hsu said, although previous consumer confidence prints had indicated widening responses between Democrats and Republicans.

"Sentiment appears to be building some momentum as consumers' expectations for the economy brighten. At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election," she continued.

Consumers across political parties are increasingly expecting Vice President Harris to win the presidency, though about two-thirds of Republicans still expect former President Donald Trump to win, Hsu said.

After the Federal Reserve cut rates by a quarter point, consumers are fully aware that inflation is slowing, although sentiment remains below its historical average in part due to frustration over high prices, Hsu added.

Business expectations surged, with optimism rising broadly, the survey said.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

September 27, 2024 10:31 ET (14:31 GMT)

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