With the U.S. economy moving towards a "no-landing" scenario—where inflation levels are lowered to target rates without compromising growth—consumer sentiment is also improving. The University of Michigan reported on the 25th that its Consumer Sentiment Index reached 70.5 in October, marking the highest level in six months since April.

This index has shown a steady upward trend for three consecutive months since August. The improvement in consumer sentiment is partly attributed to the reduced burden of high-interest rates, which has eased purchasing conditions for durable goods that often require financing or installment payments.

Joanne Hsu, director of the University of Michigan’s Consumer Sentiment Index survey, noted, “The proportion of consumers who cite high interest rates as a negative factor when considering purchases of homes, durable goods, or vehicles has declined.”

The rise in consumer sentiment aligns with other economic surveys and indicators reflecting an optimistic economic outlook. For instance, retail sales in September reached $714.4 billion, a 0.4% increase from the previous month and exceeding expert predictions.

Wall Street has anticipated a slowdown in private consumption due to factors like extended high-interest rates, slower wage growth, and the depletion of household savings. However, the latest figures indicate that, despite concerns about a potential slowdown in the labor market, the economy continues to exhibit growth potential.