Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment was revised up sharply in September, from a preliminary value of 66.6 to 68.2, though this is still a slight deterioration from 68.9 in August. While the current conditions component improved from 78.3 in August to 79.6 in September, consumer expectations slipped from 62.9 to 60.9 during the month, its lowest level in more than a year. Interestingly, the release noted that sentiment for lower income households (below $75k) improved during the month but that was swamped by a deterioration in sentiment among higher income households, hinting that some uncertainty about extension of the Bush tax cuts may be providing the restraint. One year-ahead average inflation expectations edged down 0.2 percentage point to 3.0 percent in September, though the median expectation fell from 2.7 percent to 2.2 percent (with the variance increasing from 18 to 21). Longer-term (5-10 year-ahead) average expectations were flat at 3.1 percent in September, while the median expectation ticked down from 2.8 percent to 2.7 percent.