A report from
the University of Michigan showed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment declined 1.7 per cent m-o-m to
68.9 in early October. This was the first drop in the index in three months.
Economists had predicted
the indicator would increase to 70.8
this month, marginally up from the September
final reading of 70.1.
According to
the report, the index of current economic conditions decreased 0.9 per cent m-o-m to 62.7 in October, while the
index of consumer expectations fell 2.0 per cent m-o-m to 72.9.
The report also
revealed that the estimates of year-ahead expected inflation jumped from 2.7
per cent in September to 2.9 per
cent early this month, the highest level since July (2.9 per cent). Meanwhile, the 5-year expected inflation slipped from 3.1 per cent to 3.0 per
cent.
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu noted that while
inflation expectations have eased substantially since a year ago consumers
continue to express frustration over high prices. She also added that with the
upcoming election on the horizon, some consumers appear to be withholding
judgment about the longer-term trajectory of the economy.