Last Update: 12-Sep-14 10:15 ET
- The University of Michigan Consumer Sentiment Index increased to 84.6 in the preliminary September reading from 82.5 in August. The Briefing.com consensus expected the index to increase to 83.5.
- That was the highest reading in the Sentiment Index since July 2013.
- The Present Conditions Index deteriorated in September, dropping from 99.8 in August to 98.5. The Expectations Index rose to 75.6 in September from 71.3 in August.
- Record high equity prices, declining gasoline costs, and improving employment conditions all played a positive role in boosting sentiment this month.
- Consumption growth is not reliant on sentiment gains. Income growth is required for consumption to accelerate from its current trend. As long as income continues to grow, consumption growth should follow.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.