Consumer confidence remained elevated this month, according to new data from the University of Michigan. Specifically, the headline sentiment gauge slid from 100.1 to 99.0 in the first half of October, slightly worse than anticipated but still one of the highest readings of the current business cycle. Surveyed Americans’ views of both present and future economic conditions deteriorated this month due mainly to less favorable assessments of their personal finances.
Moreover, consumers’ outlook for wage growth softened in October and concerns about inflation increased, together weighing on real income expectations. However, such weakness was partially offset by confidence in the government’s economic policies jumping to a 15-year high. Surveys of Consumers chief economist Richard Curtin added that “When asked about the upcoming election and its potential impact on their own personal finances and on the overall economy, consumers more frequently cited Republicans than Democrats as having a positive effect.”
Sources: Econoday, ZH, Bloomberg, UoM
Post author: Charles Couch