(Bloomberg). U.S. consumer optimism edged up in late September. However, it remained at a near-pandemic low. This was because Americans were slightly more positive about economic conditions.

The University of Michigan’s final sentiment index rose to 72.8 from the preliminary reading of 71, data released Friday showed. It was more than double the forecast median in a Bloomberg survey, and is higher when compared to an August print at 70.3

“Consumer sentiment edged upward in late September,” Richard Curtin, director of the survey, said in a statement. “Although the overall gain still meant the continuation of depressed optimism, initially sparked by the delta variant and supported by a surge in inflation and unfavorable long-term prospects for the national economy.”

This slight rise in sentiment may indicate that worries about the delta variant of Covid-19 are starting to recede as there is a decrease in new Covid-19 case numbers in all states. Despite the fact that sentiment is still being slowed by high prices and continuing health issues, consumer spending continues to be elevated.

Unrelated data Friday revealed that August’s personal spending growth increased more quickly than anticipated, with 0.8% of the total increase in August after July’s 0.1% decline. After a 0.5% decrease in July, this figure was adjusted for inflation and rose 0.4%.

The University of Michigan reported that the August high-priced environment caused poorer buying conditions in homes and vehicles, as well as for durable goods. However, there was an improvement in the durables buying environment from last month.

The consumer expects inflation to grow by 4.6% and 3% in the next one year. That’s up from the 2.9% reported August.

According to the Aug. 25-27 survey, the gauge of current conditions increased to 80.1, from 77.1 in its initial print. A measure of future expectancies improved to 68.1.

The respondents were more positive about their financial position now than August. The report found that only 44% expects their financial situation to improve over the next five-years, which is the lowest percentage in seven years. 

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