WASHINGTON — A measure of U.S. consumer confidence reached its highest level since July 2013, led by greater optimism that the economy will grow and incomes will rise.
The University of Michigan said Friday that its index of consumer sentiment rose to 84.6 in September from 82.5 in August. That’s the second-highest level in the past seven years, although the index has rarely topped 85 since the Great Recession. Before the downturn, it typically stood above 90.
Still, the sunnier outlook could spur consumers to spend more, which would accelerate economic growth. Consumer spending accounts for about 70 percent of economic activity. But spending growth has been subdued since the recession ended in 2009, averaging at an annual rate of 2 percent. It usually rises above 3 percent in a healthy economy.
Other measures also indicate that consumers’ outlook is brightening. The Conference Board’s consumer confidence index increased to a seven-year high last month.
Americans have been spending less because their paychecks have barely kept up with inflation. But more households expect their incomes to rise in the coming year.
