US consumer sentiment ticks higher for second month but remains subdued

WASHINGTON — The economic outlook for Americans improved for the second straight month in September, helped by lower prices for durable goods such as cars and furniture.

The University of Michigan consumer confidence index rose to 69 in its preliminary reading, up from 67.9 in August, the highest level since May.

The survey bottomed out in June 2022, when inflation peaked at 9.1%. Since then, inflation has risen by about 40%, but is still significantly below pre-pandemic levels.

“Consumers remain cautious as the approaching election creates significant uncertainty,” said Joanne Hsu, director of consumer research at the University of Michigan.

Rising consumer confidence can sometimes signal a greater willingness to spend. But Americans continue to spend at a healthy pace overall, even though their confidence, as measured by surveys, is subdued.