Consumer Sentiment Up 3.2% in October, says Survey of Consumers

Ann Arbor, October 30, 2015—Consumer sentiment rose 3.2% in October to 90.0, according to final results from the University of Michigan’s Survey of Consumers.

September’s final figure was 87.2.

October’s reading represents a 3.6% year-over-year increase.

“The entire October rebound from September was due to gains in confidence among lower income households, while confidence among households with incomes in the top third of the income distribution retreated a bit due to concerns about financial markets,” explains Survey of Consumer chief economist Richard Curtin. “Nonetheless, the overall impact from volatile stock prices has been quite small. Indeed, the average level of the Sentiment Index thus far in 2015 (93.1) is higher than any other year since 2004 (95.2). More importantly, future financial prospects were viewed more favorably by all households in October than anytime since 2007. In addition, the expected long term inflation rate dropped to the lowest level in over a quarter century. While these favorable trends will keep the pace of growth in consumer spending at 2.9% in 2016, consumers will continue to make increases in their buying plans contingent on the availability of price discounts and low interest rates. Indeed, it was consumers' disappointment with available price discounts that was responsible for the small retrenchment in confidence in the last half of October.”