Friday, September 27, 2013

Consumer Confidence Sharply Declined in September

Consumer confidence dropped to the lowest level since April according to the University of Michigan’s Consumer Sentiment. The drop in consumer sentiment was driven by the uncertainty surrounding the federal budget and debt ceiling. There was a similar drop in January due to the “fiscal cliff” debates. September’s index was 77.5, a decrease of 4.6 index points.

The present conditions portion of the index declined 2.6 index points to 92.6. Future expectations really took a hit from the uncertainty from Capitol Hill, dropping 5.9 points to 67.8.

Inflationary expectations improved slightly, with the 1-year expectation increasing 0.3% to 3.3% and the 5-year expectation improving 0.1% to 3.0%.

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