Today’s data showed that the University of Michigan’s Consumer Sentiment Index fell 1.5 points in October. According to analysts from Wells Fargo, the reading of 98.6 may in part be a reflection of recent stock market volatility and higher gasoline prices.
Key Quotes:
“Despite the lower reading, October sentiment remains at an elevated level relative to the rest of the current cycle. Recent volatility in the stock market likely contributed to the slide in sentiment, as consumers’ assessment of their current financial situation fell 5 points over the month. The 4-point decline in consumers’ expected financial situation, moreover, may signal a deeper level of caution.”
“Consumers now expect inflation to be 2.9% next year, up from 2.7% in September. This may partially be due to higher gasoline prices. Adding to the cost, are higher interest rates; expected buying conditions for homes, vehicles and durables all fell in October. The continued slide in the good time to buy a home
measure matches the moderation in home sales, and is largely being driven by higher mortgage rates.”
Share
