U.S. consumer sentiment improved moderately in September, while households' inflation expectations declined amid lower gasoline prices, a survey released on Friday showed.

The University of Michigan's preliminary September reading on the overall index on consumer sentiment came in at 59.5, up from 58.6 in the prior month. Economists polled by Reuters had forecast a preliminary reading of 60.0 in September.

The survey's reading of one-year inflation expectations dropped to 4.6%, the lowest since September 2021, from 4.8% in August. The survey's five-year inflation outlook slipped to 2.8%, the lowest since July 2021, from 2.9% in August.