U.S. Consumer Sentiment Rises Amid Improvement In Expectations
October 16 2020 - 6:09AM
RTTF2
With an improvement in consumer expectations more than
offsetting concerns about current conditions, the University of
Michigan released a report on Friday showing a much bigger than
expected increase in U.S. consumer sentiment in the month of
October.
The preliminary report said the consumer sentiment index rose to
81.2 in October from the final September reading of 80.4.
Economists had expected the index to inch up to 80.5.
The bigger than expected increase by the headline index came as
the index of consumer expectations climbed to 78.8 in October from
75.6 in September, reaching its highest level since March.
On the other hand, the report said the current economic
conditions index fell to 84.9 in October after jumping to 87.8 in
September.
"Slowing employment growth, the resurgence in covid-19
infections, and the absence of additional federal relief payments
prompted consumers to become more concerned about the current
economic conditions," said Surveys of Consumers chief economist
Richard Curtin.
Curtin added, "Those concerns were largely offset by continued
small gains in economic prospects for the year ahead."
On the inflation front, the report said one-year inflation
expectations inched up to 2.7 percent in October from 2.6 percent
in September, while five-year inflation expectations fell to 2.4
percent from 2.7 percent.
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