U.S. consumer sentiment rose to a 14-month high in September as American's outlook of the overall economy improved, a survey showed Friday.
The final reading of the consumer sentiment index in September edged up to 84.6, the same as the preliminary reading, from 82.5 in August, according to the monthly Thomson Reuters/University of Michigan survey of consumers. That was largely in line with economists' expectation of 84.7 and the highest since July 2013.
The sub-index gauging consumer expectations for six months from now, which more closely projects the direction of consumer spending, edged up to 75.4 in September from 71.3 in the prior month, but slightly lower than the preliminary reading of 75.6.
The sub-index of current economic conditions, which reflects Americans' perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like houses or cars, declined to 98.9 in September from 99.8 last month, but higher than its preliminary reading of 98.5.
"Consumer confidence posted a healthy September gain due to more favorable prospects for the domestic economy as well as more favorable personal income expectations," survey director Richard Curtin said in a statement.
"The renewal of income growth is particularly important for sparking increased consumer spending in the year ahead," he added.
The U.S. Commerce Department on Friday revised up its estimate for the real gross domestic product (GDP) in the second quarter to a growth of 4.6 percent, much higher than a contraction of 2.1 percent in the first quarter, indicating the U.S. economic growth is gaining momentum.
The consumer sentiment index, released twice each month, one preliminary and the other final, averaged 64.2 during the latest recession from December 2007 to June 2009, and was at 89 in the five years leading up to the recession./.