Consumer Sentiment Surges in October

Ann Arbor, MI, October 16, 2015—Consumer sentiment rose 5.6% in October to 92.1, according to preliminary results by the University of Michigan Survey of Consumers.

September’s final reading was 87.2. 

The October figure also represents a 6.0% year-over-year increase when compared to October 2014’s 86.9 reading.

“The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street,” says Survey of Consumers’ chief economist, Richard Curtin. “Importantly, the renewed confidence did not simply represent a relief rally, but instead reflected renewed optimism. Personal financial expectations rose to their highest level since 2007, as did consumers' views toward purchases of durable goods. While consumers anticipate a continued economic expansion, many expected strong headwinds from falling commodity prices, weakened economies in China and elsewhere as well as continued stresses on European countries. Perhaps the most important finding is that low inflation and continued job growth have enabled consumers to adapt to a slower and more variable rate of economic growth by varying the pace of their spending without losing confidence that the expansion will continue. Overall, the data still indicate that consumption will expand at 2.9% during 2016.”