Source: University of Michigan
Consumer sentiment fell slightly in October due to the uptick in inflation and the declining confidence in government policies.
- The Index of Consumer Sentiment stood at 71.7, down 1.5% from September’s 72.8 and 12.3% lower than 81.8 the same month last year.
- Current Economic Conditions fell to 77.7, down 3.0% from September’s 80.1 and 9.5% lower than 85.9 in October 2020.
- The Index of Consumer Expectations was 67.9, down 0.3% from 68.1 the previous month and 14.3% from 79.2 a year ago.
- The decline is attributed to the anticipated highest-year ahead inflation rate since 2008, and inflation uncertainty the greatest in nearly 40 years.
- The uncertainties offset higher income expectations and the decline in the number COVID-19 cases.