Consumer sentiment surprises to the downside in October

• University of Michigan October Consumer Sentiment: 71.4 vs. 74.0 consensus and 72.8 prior.
• Current Economic Conditions: 77.9 vs. 80.1 prior.
• Index of Consumer Expectations: 67.2 vs. 68.1 prior.
• "The Delta variant, supply chain shortages, and reduced labor force participation rates will continue to dim the pace of consumer spending into 2022," said Surveys of Consumers Chief Economist Richard Curtin.
• "There is another, less tangible factor that has contributed to the slump in optimism: confidence in government economic policies has significantly declined during the past six months," he added."
• When asked about their confidence in economic policies, consumers' favorable evaluations fell to 19% in early October from a high of 31% in April, Curtin said.
• "The decline in confidence in economic policies was recorded across all age, income, and education subgroups as well as among Democrats, Independents, and Republicans," he said.