Consumer Sentiment Worse Than Expected

Shawshank, VA 10/14/2011 (PennyPayDay) – The preliminary October reading of consumer sentiment from the U of Michigan was worse than expected, it fell two points to 57.5, but had been forecast to increase a fraction.

While both main components went down it was the Expectations that was notable. The Current Economic conditions component fell one point to 73.8, but that keeps it five points above the recent low set in August. But the Economic Outlook fell 2.4 points in October to 47.0; a fraction below the recent low set in August, making this latest reading the lowest result in three decades.

The One Year Ahead Inflation Expectation was down one tenth on the month to 3.2%, the lowest reading for 2011.

The Five Year Ahead Inflation Expectation was down two tenths on the month to 2.7%, just one tenth above the recent recession low set at the end of 2008 and again in early 2009.

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