U.S. consumer sentiment rose to a seven-month high in September, but not as much as expected as concerns over the growing financial crisis increased, the University of Michigan reported Friday. The university's consumer-sentiment survey rose to 70.3 this month from 63.0 in August. It was the highest reading since 70.8 in February. However, September's performance was below economist's expectation for a reading of 71.0. “The rebound in consumer confidence ended amid heightened concerns about the growing financial crisis, although these concerns arose too late in the month to completely erase the earlier gains,” the report said. The survey's reading on one-year inflation expectations fell to 4.3 percent—the lowest since March—from 4.8 percent in August. The five-year inflation expectation fell to 3.0 percent—also the lowest since March—from 3.2 percent in August. The index of consumer expectations rose to 67.2 this month from 57.9 in August. It was the highest level since 68.1 in January. Financial markets are dealing with a year-long credit crisis caused by the worst U.S. housing slump since the 1930s, which also has slowed the broader economy. Economists closely watch consumer-confidence indexes for clues on consumer spending, which accounts for two-thirds of U.S. economic activity.
