Consumer Sentiment Index Down Sharply

The consumer sentiment index is down sharply so far this month, 3.3 points lower to 87.9 for the weakest reading since September last year. Weakness is centered in expectations where the component is down more than 6 points to 76.6 to match the lowest reading since this year's preliminary April report. But there's surprisingly good news in the report, and that's a 1.3 point rise in current conditions which hints at actual month-to-month strength for October consumer spending. One-year inflation expectations are unchanged at a very low 2.4 percent. This report isn't completely one sided but the weakness in expectations does point to doubts over future income prospects which, if confirmed in subsequent reports, would not point to strength for the holiday shopping season.

Recent History Of This Indicator:
Consumer sentiment trended solidly higher to a roughly 92 to 93 pace the last two weeks of September, led by income expectations among higher income households. Forecasters see the preliminary reading for October coming in at a consensus 92.0.