Consumer Sentiment Showing Strength

Consumer sentiment is showing strength, rising 1.4 points from both mid-month and final August to a final September reading of 91.2. The gain relative to mid-month implies a 92 to 93 pace for the last two weeks of the month which would be the strongest reading since June. The expectations component leads the report, up 4 points in the month to 82.7 and specifically reflecting confidence among higher income households. The current conditions index, in what however is a negative indication for September consumer spending, fell nearly 3 points to 104.2. In sum, this is a mixed report though the strength in expectations does match that seen earlier this week in the consumer confidence report, indications that point to long-term confidence in the labor market.

Recent History Of This Indicator:
Consumer sentiment has been steady and respectable, ending August with a final reading of 89.8. The expectations component has been solid which points to confidence in the jobs outlook. But current conditions, the report's second component, have been edging lower to indicate easing strength in the current jobs market. Inflation readings, reflecting the summer's downdraft in gasoline prices, have been unusually low. Forecasters see the index edging higher in the September flash to 90.1.