US Mich October prelim consumer sentiment 96.0 vs 92.0 expected
Preliminary consumer sentiment data for October from the University of Michigan:
- Final October reading was 93.2
- Current conditions 113.4 vs 109.0 expected (prior was 108.5)
- Expectations 84.8 vs 82.5 exp (prior was 83.4)
- 1 -year inflation 2.5% vs 2.8% prior
- 5-10 year inflation 2.2% vs 2.4% (all time low)
This is a good headline and might give the Fed some pause about cutting rates but there are two very important caveats. One is that expectations lagged current conditions but the more-important one was that long-term inflation expectations fell to a record low. FOMC officials are increasingly expressing worries about low inflation.