US Consumer Sentiment Unexpectedly Rises to Six-Month High in October

WASHINGTON (dpa-AFX) – Consumer confidence in the United States unexpectedly improved in October, according to updated data released Friday by the University of Michigan.

The University of Michigan said its consumer sentiment index for October was revised upward to 70.5 from a preliminary reading of 68.9. Economists expected the index to be revised slightly upwards to 69.0.

With the larger-than-expected upward revision, the consumer sentiment index is now slightly above 70.1, the last reading in September.

Consumer confidence index increased for the third consecutive month and reached its highest level since 77.2 in April.

‘This month’s increase was driven in part by modest improvements in durable goods purchasing conditions due to declines in interest rates,’ said Joanne Hsu, Director of Surveys of Consumers.

While the current economic conditions index increased from 63.3 in September to 64.9 in October, the consumer expectations index decreased from 74.4 in September to 74.1 in October.

The report also stated that year-end inflation expectations remained unchanged compared to last month, at 2.7 percent, and fell to the 2.3-3.0 percent range seen in the two years before the pandemic.

Meanwhile, long-term inflation expectations fell from 3.1 percent in September to 3.0 percent in October, but remain modestly higher than the range of readings seen in the two years before the pandemic.

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