–October Consumer Sentiment Index Highest Since September 2007
By Ian McKendry
WASHINGTON (MNI) – U.S. consumer sentiment rose unexpectedly to a
five-year high in October according to the first reading of the
Reuters/University of Michigan Consumer Sentiment data released Friday.
The index came in at 83.1 vs. 78.3 reported in September, and the
highest reading since September 2007 when the index was 83.4.
The index’s Consumer Expectations index also reached a five-year
high in October, rising to 79.5 from 73.5. The last time the reading was
that high or higher was in July 2007 when it was 81.5.
The index’s preliminary number for current conditions came in at
88.6 for October vs. September’s 85.7.
Consumers’ initial 1-year inflation expectations came in at 3.1%
compared to September’s final expectation of 3.3%. 5-year inflation
expectations were 2.6% vs. September’s final reading of 2.8%.
The median forecast in the MNI survey of economists was for the
index to fall 0.3 points to 78.0, as 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.
The Investor Business Daily/Techno Metrica Market Intelligence
consumer confidence index which was released earlier in the week
reported that consumer confidence reached levels not seen since November
2006.
The final Consumer Sentiment Index data for October will be
released October 26.
** MNI Washington Bureau: 202-371-2121 **
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