- The Final Univ. of Mich. Consumer Confidence for Oct. fell to 80.9 versus estimates of 82.0 and a prior estimate of 82.0.
BOTTOM LINE: Confidence among US consumers fell more than forecast in October, Bloomberg reported. The expectations component fell to 70.1 from 74.1 the prior month. The current conditions component, which gauges consumers perceptions of their present financial situation and whether it is a good time to buy large items, remained relatively high at 97.6. Over the next five years consumers said they expect inflation to rise a below-average 2.8%. I still expect consumer confidence to move back towards cycle highs over the intermediate-term as housing fears subside, interest rates remain low, inflation decelerates further, gas prices decline, unemployment remains historically low, wages continue to significantly outpace inflation and stocks rise further.
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