Consumer Sentiment Moves Slightly Lower

Less favorable views of personal finances are pulling consumer sentiment slightly lower this month, to a still very solid 99.0 in the preliminary October reading vs 100.1 in final September and 100.8 in preliminary September. Some of the sampling in the latest period did follow Wednesday's rout in the stock market but, according to the report, had virtually no impact on the results.

Year-ahead inflation expectations, as they did in the Atlanta Fed's report at the business level, are edging higher this month, up 1 tenth to 2.8 percent. But an offset in this report is a 2 tenths decline in 5-year inflation expectations, now at only 2.3 percent.

A note going into the mid-term elections next month is that confidence in the government's economic policies is at its highest level in 15 years reflecting strong confidence among Republicans and improving confidence among Democrats.

Among other readings, the current conditions component edged 8 tenths lower from final September to 114.4 while the expectations component fell 1.4 points to 89.1.