US consumer confidence stabilises at the start of September

Consumer confidence in the US appeared to stabilise at the start of September after plunging during the month before as the Delta variant of Covid-19 rolled across the country, the results of a closely-followed survey revealed.

The University of Michigan's consumer confidence index edged up from an August's reading of 70.3 to 71.0.

Economists had penciled-in only a slightly bigger rebound.

Inflation expectations one year out rose by a tenth of a percentage point to 4.7%, reversing July's dip, while on a five-year timeframe they were steady at 2.9%.

Commenting on the data, Ian Shepherdson, chief US economist at Pantheon Macroeconomics said: "Sentiment remains depressed relative both to the spring and - especially - the pre-pandemic level, but we think the September reading will be the floor.

"By the time of the next survey, we expect it to be clear that Delta is in full retreat, so confidence should start to rebound."