U.S. final consumer sentiment index drops slightly in October, likely to underpin consumption demand

The final estimate of U.S. University of Michigan consumer sentiment dropped slightly from the preliminary estimate. The index remains resilient in October. The consumer sentiment index dropped a bit to 98.6 in October from the preliminary estimate of 99. The minor downward revisions to the current conditions and expectations indices led the mild drop in the headline index.

In the meantime, inflation expectations roe for both the one-year-ahead and the longer-term horizons. However, in spite of the factors such as stock market volatility, higher interest rates, and uncertainty regarding tariffs and the mid-term elections, consumer sentiment continues to be rather resilient, noted Barclays in a research report.

The index average for this year came in at 98.5, the highest since 2000. Much of this sentiment appears to come from consumers’ favourable assessments of the labor market. Overall, confidence continues to be on a fairly solid footing and is likely to underpin consumption demand in the months ahead.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 34.262. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex