U.S. consumer confidence rises to highest since May but remains cautious

Consumer confidence rose to its highest level since May 2024, rising for the second consecutive month and about 2 percent from August, said Joanne Hsu, director of the University of Michigan Consumer Survey. The rise in consumer confidence was largely due to improved purchasing conditions for consumer durables, which consumers perceive to be more favorably priced. Expectations for both personal finances and the economy improved, although views on the labor market weakened slightly. Consumer confidence is currently about 40% above its June 2022 low, although consumers remain cautious as the upcoming U.S. elections continue to generate significant uncertainty. A growing number of Republicans and Democrats now expect Harris to win. The gap between the two parties on the consumer confidence index has also widened due to differing views on the economic impact of a Harris presidency.