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Slower inflation is boosting Americans’ attitudes toward the economy

  • CNN
  • September 13, 2024
Washington

CNN

 — 

Americans are feeling a greater sense of optimism about the US economy this month, thanks to slower inflation. Voters also see a greater likelihood that Vice President Kamala Harris will defeat former President Donald Trump in the upcoming November election.

The University of Michigan's latest consumer survey, released Friday, showed that Americans' attitudes toward the economy improved notably this month, rising 2% from August, according to a preliminary reading. That broke a monthslong spell of consumer sentiment mostly holding steady, aside from a modest increase last month. Sentiment is now 40% higher than the record low reached in June 2022, when inflation was running red hot, but it still remains below pre-pandemic levels.

"Consumer sentiment rose to its highest reading since May 2024, increasing for the second consecutive month and lifting about 2% above August," Joanne Tsu, director of the university's Surveys of Consumers, said in a release. "The gain was led by an improvement in buying conditions for durables, driven by more favorable prices as perceived by consumers."

The survey also noted that "a growing share of both Republicans and Democrats now anticipate a Harris win," a few days after Harris and Trump went toe-to-toe during their first presidential debate, hosted on Tuesday by ABC.

US consumers also felt more upbeat about inflation's future. Expectations for inflation rates in the year head declined for the fourth-straight month in September, according to the report, reaching its lowest reading since December 2020.