UoM Consumer Sentiment Index edges lower to 71.7

Consumer confidence in the US weakened modestly in October with the University of Michigan’s Consumer Sentiment Index declining to 71.7 in October’s final reading from 72.8 in September. This print came in slightly better than the flash estimate and the market expectation of 71.4.

Other details have indicated that the Current Conditions Index edged lower to 77.7 from 80.1 and the Consumer Expectations Index fell to 67.9 from 68.1.

The positive impact of higher income expectations and the receding coronavirus has been offset by higher rates of inflation and falling confidence in government economic policies.

Consumers not only anticipated the highest year-ahead inflation rate since 2008 in the October survey, consumers also expressed greater uncertainty about the year-ahead inflation rate than anytime in nearly forty years.