Go Figure: Consumer Sentiment Spurted In September…

The fiscal cliff looms, worries about the fate of the Euro and European sovereign debt continue and everyone is uncertain about political environments everywhere. But American consumers clearly became more upbeat in September, according to both major research groups tracking consumer confidence.

The Thomson Reuters/University of Michigan Consumer Sentiment Index rose to 78.3 in the final September reading, from 74.3 in August. The Expectations Index posted an even bigger gain, to 73.5 from 65.1 last month. UM attributed the gains to rising home values and increases in the equity markets, as well as rising expectations about the U.S. economy’s ability to create jobs.

At The Conference Board, the Consumer Confidence Index posted a big gain in September, to 70.3 from 61.3 in August. The group’s Expectations Index jumped nearly 13 points. “Consumers were more positive in their assessment of current conditions, in particular the job market,” said Lynn Franco, the group’s director of economic indicators. She added consumers were “considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation.”