The final
reading for the October Reuters/Michigan index of consumer sentiment came in at
70.5 compared to the flash reading of 68.9 and the September final reading of 70.1. This marked
the highest reading since April (77.2).
Economists
had expected the indicator to be revised marginally up to 69.0.
The details of
the latest Surveys of Consumers of the University of Michigan showed that the
index of current economic conditions increased by 2.5 per cent m-o-m to 64.9
this month, while the index of consumer expectations decreased by 0.4 per cent
m-o-m to 74.1.
The report also
revealed that the year-ahead inflation expectations remained unchanged at 2.7 per cent
in October, compared to the preliminary reading of 2.9 per cent. Meanwhile,
the 5-year inflation expectations fell from 3.1 per cent in September
to 3.0 per cent, matching the
preliminary estimates.
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted this
month’s increase was primarily due to modest improvements in buying conditions
for durables, in part due to easing interest rates. “The upcoming election
looms large over consumer expectations,” she added.