–October Consumer Sentiment Index Highest Since September 2007
By Ian McKendry
WASHINGTON (MNI) – The U.S. Reuters/University of Michigan consumer
sentiment index was revised down to 82.6 from 83.1 in October but is
still at a five-year high according to data released Friday.
The consumer expectations index was also revised down but remained
at a five-year high in October. The index was originally reported at 79.5
before being revised down to 79.0.
The last time the consumer expectations index was above 79.0 was in
July 2007 when it was 81.5. The headline index was the highest since
September 2007 when it was 80.9.
The current conditions index was revised down to 88.1 from 88.1.
Consumers’ 1-year inflation expectations came in at 3.1% compared
to September’s final expectation of 3.3%. 5-year inflation expectations
were 2.7% vs. September’s final reading of 2.8%. Consumers’ preliminary
October 5-year inflation expectation was 2.6%.
The median forecast in the MNI survey of economists was for the
index to hold at 83.1. Some forecasters believed the bounce seen in
August and September would fade. However, consumer sentiment was likely
boosted by a stronger stock market and an apparent bottoming in housing.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$,MT$$$$]