U.S. consumer sentiment rose in September to its highest level in more than a year on growing optimism about the economy and a more favorable outlook on future income, the University of Michigan reported Friday.
The university's final September reading on overall consumer sentiment was 84.6, the highest since July 2013 and up from 82.5 at the end of August.
The main factor promoting greater confidence in September was more favorable prospects for the domestic economy as well as more favorable personal-income expectations,â€ survey director Richard Curtin said in a statement.
Curtin said the September reading, which was the second-highest in the last seven years, signals an acceleration in consumer spending in the next 12 months. He said consumer spending which accounts for 70 percent of U.S. economic activityâ€”might grow at a 2.7 percent annual pace.
The survey's sub-index of consumer expectations, which measures future sentiment, rose to 75.4, also the highest since July 2013, from 71.3 in August. The sub-index of current economic conditions was 98.9, down from 99.8 the previous month.
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