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Friday, October 25, 2013

Final October Consumer Sentiment declines to 73.2

by Calculated Risk on 10/25/2013 09:55:00 AM

Consumer Sentiment
Click on graph for larger image.

The final Reuters / University of Michigan consumer sentiment index for October was at 73.2, down from the September reading of 77.5, and down from the preliminary October reading of 75.2.

This was below the consensus forecast of 74.8. Sentiment has generally been improving following the recession - with plenty of ups and downs - and one big spike down when Congress threatened to "not pay the bills" in 2011. 

Unfortunately Congress shut down the government, and once again threatened to "not pay the bills", and this impacted sentiment (and possibly consumer spending) in October.  The spike down wasn't as large this time, probably because many people realized the House was bluffing with a losing hand.