U.S. consumer sentiment on a solid footing

The University of Michigan index of consumer sentiment rose to 92.1 in the preliminary October estimate is above expectation. The current conditions index rose to 106.7 (previous: 101.2), and consumer expectations advanced to 82.7 (previous: 78.2). This morning's data reverse the softness seen in the September survey results and put sentiment back on a solid footing overall. 

Within the details of consumer expectations, expected personal finances (128, previous: 121) moved up to the highest level since 2007, and the 5-year economic outlook (104, previous: 93) rose to the highest level since June. Inflation expectations declined one-tenth in the mid-month estimates, at both the 1-year (2.7%, previous: 2.8%) and 5-10 year (2.6%, previous: 2.7%) horizons. 

Buying conditions for durables (164, previous: 151) surged. Overall, the preliminary October results suggest a notable firming in consumer sentiment. 

"We take positive signal from these data and view them as supportive for our expectation that consumption growth will continue to outperform", argues Barclays.