Ann Arbor, MI, October 14, 2005--The University of Michigan's preliminary index of consumer sentiment decreased to 75.4 in mid-October from 76.9 in September.
Economists had forecast an increase to 80.
While economists expect sentiment to rise in the coming months, consumers will continue to face gas prices near $3 a gallon in the wake of the hurricanes, and may see their home heating bills increase by more than $100 a month this winter, leaving them with less discretionary income.
The preliminary sentiment index is based on a phone survey of about 300 households. The final report for the month, due Oct. 28, will reflect a total of about 500 responses.
