Keeping you up to date on the latest data releases.
Preliminary numbers show that The University of Michigan’s Index of Consumer Sentiment dipped to 75.2 in early October (from 77.5 in September)—the lowest reading since August 2012. Thirty-five percent of all consumers mentioned an unfavorable reference to the government’s economic policies, an all-time record. Survey respondents viewed current economic conditions better than last month, up slightly to 92.8. This increase was due to more households reporting income gains. On the other hand, consumer expectations decreased, from 67.8 to 63.9. Finally, buying attitudes toward household durables fell from 143 to 139 in September due to fewer discounts on prices and interest rates, yet vehicle and home-buying improved.
As for inflation expectations in early October, consumers expect a year-ahead inflation rate of 2.9 percent and a longer-term (five- to ten-year) rate of 2.8 percent.