How We Present
U.S. consumer sentiment at highest in five years in Oct
Reuters Translate This Article
26 October 2012
NEW YORK, Oct 26 (Reuters) - U.S. consumer sentiment rose to its highest level in five years in October as Americans were more upbeat about prospects for the economy and their own finances, a survey released on Friday showed.
The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment rose to 82.6 from 78.3 in September. It was at its highest level since September 2007 on a final reading basis.
Still, that was slightly below the preliminary reading of 83.1 and shy of economists' expectations for 83.
There are also clouds on the horizon. After the presidential election in November, policymakers will have to deal with a package of scheduled spending cuts and tax increases, and political wrangling could prompt a decline in consumer confidence as sharp as the recent increase, according to the survey.
'Unless the legislation is carefully managed by whoever wins, the debate could produce the same depressing effect on consumer confidence as last year's debt ceiling fiasco,' survey director Richard Curtin said in a statement.
'While the surge in confidence will act to bolster consumer spending during the upcoming holiday season, it also means that this higher level of confidence is more vulnerable to reversal and has thus raised the stakes for post-election economic policies.'
Two-thirds of consumers surveyed expected President Barack Obama to win his re-election bid in just over a week.
The barometer of current economic conditions gained to 88.1 from 85.7, while the gauge of consumer expectations rose to their highest level since July 2007 at 79 from 73.5.
Consumers anticipated smaller price increases, with the one-year inflation expectation easing to 3.1 percent from 3.3 percent, while the five-to-10-year inflation outlook fell to 2.7 percent from 2.8 percent.
(Reporting by Leah Schnurr; Editing by Chizu Nomiyama)
© Copyright 2012 Reuters
Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. 'Reuters' and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies. For additional information on other Reuters media services please visit reuters.com/newsagency .
Every day Global Good News documents the rise of a better quality of life dawning in the world from good news reported by the press; and highlights the need for introducing Natural Law based—Total Knowledge based—programmes to bring the support of Nature to every individual, raise the quality of life of every society, and create a lasting state of world peace.
Translation software is not perfect; however if you would like to try it, you can translate this page using:
Send Good News to Global Good News.