Consumer sentiment in the U.S. saw an unexpected increase in October, as indicated by revised figures from the University of Michigan issued on Friday.
The University of Michigan reported that the consumer sentiment index for October was adjusted upward to 70.5 from an initial estimate of 68.9. Economists had anticipated a slight revision to 69.0.
With this larger-than-expected revision, the consumer sentiment index now sits modestly above the final reading for September, which was 70.1.
This marks the third consecutive month of growth for the consumer sentiment index, reaching its highest point since it hit 77.2 in April.
“The increase this month was mainly attributed to slight improvements in purchasing conditions for durable goods, partly due to declining interest rates,” said Joanne Hsu, Director of Surveys of Consumers.
The current economic conditions index climbed to 64.9 in October, up from 63.3 in September, while the index reflecting consumer expectations dipped slightly to 74.1 in October from 74.4 in September.
The report also noted that year-ahead inflation expectations remained stable at 2.7 percent, consistent with the 2.3-3.0 percent range observed during the two years before the pandemic.
In addition, long-term inflation expectations decreased marginally to 3.0 percent in October from 3.1 percent in September, yet they are still somewhat elevated compared to the pre-pandemic period.
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