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US consumer confidence improved significantly in September, reaching the second highest level since 2004, only behind the March results of this year.
The University of Michigan announced Friday that its US consumer confidence index was 100.8 this month, up from 96.2 in August. The August reading was the lowest since January.
Economists surveyed by the Wall Street Journal were expecting a preliminary reading of 96.1 for September.
"Consumers have anticipated continued growth in the economy that would create more jobs and an even lower unemployment rate in the coming year," said Chief Economist Richard Curtin .
The index of expectations of the consumer survey on the future of the economy rose to 91.1, the highest level since July 2004. The general sentiment of consumers is that they are the most important. has improved significantly since the end of 2016, but mainly thanks to record levels.
If consumers also feel optimistic about the future, this could support spending and long-term investments, such as buying a house or a car. A slight majority of respondents believe that the current economic expansion, which began in mid-2009, will continue unabated over the next five years. If that were to happen, it would be by far the longest period of economic growth since at least the Second World War, when modern archives began.
The improved outlook is "largely due to a more favorable outlook for jobs and incomes," Curtin said.
Expectations of stronger inflation, which had strengthened this year, slowed in September, helping to offset concerns about declining standards of living.
Consumers are still more optimistic about current conditions. The index of current conditions was 116.1 in September, the highest since June, and an improvement after two monthly declines.
A negative impact of tariffs was the biggest problem on the economic horizon, Curtin said. Nearly one-third of those surveyed in the last three months have expressed concerns about the impact of tariffs on the national economy, compared to one in five in the previous four months.
An index of 100 corresponds to the 1966 reading.
Write to Eric Morath at [email protected]
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