Home · News · U.S. Consumers More Hopeful in September

U.S. Consumers More Hopeful in September

According to the Thomson Reuters/University of Michigan consumer sentiment index for September, consumers in the U.S. were much more upbeat about the economy; more hopeful actually than in the past four months. The index shows a rise in from 74.3 in August to 79.2 in the preliminary September report. Experts were actually expecting a fall in the numbers, down to just 74.0 but were pleasantly surprised by the upward spike.

Consumer expectations also rose from 65.1 in August to 73.4 for September. The expectations and the sentiment measures were the highest that they have been since May, 2012. Most surveyed said that they fully expect the rate of unemployment to decrease which is a major change from just a few months ago when most 25 percent of the surveyors expected unemployment to rise.

42 percent of consumers surveyed also said that they expect the economy to see positive long term changes although experts believe that these hopeful answers were likely the result of the recent conventions for presidential candidates. Consumers also felt that their finances were improving with just 37 percent experiencing a worse financial situation than in the past. This is down drastically from the 40 percent who reported in August.

Business inventories jumped as well. In fact, inventories showed a larger gain in July than in the past six months. Inventories rose to a record 0.8 percent or $1.59 trillion. This is a 0.1 percent rise from June. These numbers are much better than what was anticipated, prompting economists to believe that perhaps this quarter could show some significant growth for businesses.

Business sales were up 0.9 percent in July after falling in June. These increases in sales were the largest seen in the nation since the Christmas season in 2011. At this rising pace, it would take only 1.28 months for business shelves to be cleared as opposed to the 1.29 months estimated in June.

07.09.2012. 17:01