U.S. Consumer Sentiment Improves Modestly In October, Inflation Expectations Rebound
14 October 2022 - 10:11PM
RTTF2
Consumer sentiment in the U.S. has seen a modest improvement in
the month of October, according to preliminary data released by the
University of Michigan on Friday.
The University of Michigan said its consumer sentiment index
crept up to 59.8 in October from 58.6 in September. Economists had
expected the index to inch up to 59.0.
With the slightly bigger than expected uptick, the consumer
sentiment index continued to recover from all-time low in June,
reaching its highest level since hitting 65.2 in April.
The increase by the headline index reflected a notable
improvement in consumers' assessment of current conditions, with
the current economic conditions index jumping to 65.3 in October
from 59.7 in September.
On the other hand, the index of consumer expectations dipped to
56.2 in October from 58.0 in September, suggesting the improvement
in consumer sentiment remains tentative.
"Continued uncertainty over the future trajectory of prices,
economies, and financial markets around the world indicate a bumpy
road ahead for consumers," said Surveys of Consumers Director
Joanne Hsu.
Meanwhile, the report showed a rebound in inflation
expectations, with one-year inflation expectations climbing to 5.1
in October after dropping to a one-year low of 4.7 in
September.
Five-year inflation expectations also increased to 2.9 percent
in October after falling to 2.7 percent in September.
"Last month, long run inflation expectations fell below the
narrow 2.9-3.1% range for the first time since July 2021, but since
then expectations have returned to that range at 2.9%," Hsu
said.
She added, "After 3 months of expecting minimal increases in gas
prices in the year ahead, both short and longer run expectations
rebounded in October.
NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Mar 2024 to Apr 2024
NZD vs US Dollar (FX:NZDUSD)
Forex Chart
From Apr 2023 to Apr 2024