Friday, October 28, 2016

Consumer Sentiment Fell in October

Consumer Sentiment fell 4.0 points in October to 87.2 – to the lowest level in two years, according to the University of Michigan Consumer Sentiment Index.

The Current Economic Conditions Index fell 1.0 points to 103.2, while the Consumer Expectations Index fell 5.9 points to 76.8.

“The October decline was due to less favorable prospects for the national economy, with half of all consumers anticipating an economic downturn sometime in the next five years for the first time since October 2014,” said Richard Curtin, Chief Economist of UM Surveys of Consumers. “Objectively, the probability of a downturn during the next five years is far from zero. This would be the longest expansion in 150 years if it lasted just over half of the five year horizon. Nonetheless, the October rise may simply reflect a temporary bout of uncertainty caused by the election.”

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