Highlights of Michigan Sentiment Indicator for October
Consumer Sentiment climbed in October to the highest mark since the start of Y 2004 as US households grew upbeat about the outlook for the US economy, a University of Michigan (MSI) survey showed Friday.
|Highlights of Michigan Sentiment (October, final)|
Gains in incomes, higher property values and stocks at a record kept sentiment about personal finances near an all-time high.
More than 50% of all respondents in the survey said they anticipated the good times would persist in the coming year and expected the economic expansion would endure over the next five, the University of Michigan survey showed
Improved finances were reported by 53% of all consumers this month, the biggest share since early Y 2000. Even more compelling was the fact that the recent gain was spread across age and income groups.
The pickup in confidence was accompanied by an increase in spending plans.
Buying conditions for household durable’s were the most favorable since Y 2006 and largely due to gains among low and middle-income consumers.
The US economy, which expanded at a faster-than-forecast 3% pace in Q-3, continues to recover from recent hurricanes with rebuilding efforts providing a boost after the initial hit.
Jobless claims have fallen below their pre-storm marks, and new-home sales unexpectedly rose in September due to increased activity in the South, according to government figures released this week.
Some other Details
- Nearly 70% of all US homeowners reported increases in property values
- Consumers saw probability of future stock gains as highest in more than a decade
- Annual income gain of 2.1% was expected by consumers, up from 1.7% last month; most of the gain due to people with incomes in the bottom 33%
- Consumers saw inflation rate in the next year at 2.4% after 2.7% the prior month
- Inflation rate seen over next 5 to 10 years was unchanged at 2.5%
- Almost 7 in 10 consumers anticipated interest rates to rise in the coming year
Making America Great Again
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