Indeed, the average level of the Sentiment Index thus far in 2015 (93.1) is higher than any other year since 2004 (95.2). Consumer sentiment was less robust than initially forecast, and this shows that the competing report from the Conference Board on consumer confidence was more indicative of reality than the preliminary sentiment report had indicated.
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Consumer confidence slipped at the end of October as wealthier households anxious about volatility in financial markets.
Over the next five to 10 years, households expect a 2.5 percent rate of inflation, matching September 2002 as the lowest on record. So did their expectations that their personal finances would improve in a year.
The University of Michigan final consumer sentiment index for October, released on Friday, came in at 90, lower than the preliminary reading of 92.1.
The sub-index of current conditions, reflecting Americans’ perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like cars, increased to 102.3 from 101.2 last month.
The index of consumer expectations climbed to 82.1 in October from 78.2 in September and was only slightly below the preliminary reading of 82.7. Interviews are conducted throughout the month by telephone.
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Established in 1949, the University of Michigan Institute for Social Research is the world’s largest academic social science survey and research organization, and a world leader in developing and applying social science methodology and in educating researchers and students from around the world.
