U.S. preliminary University of Michigan consumer sentiment falls slightly in October

U.S. University of Michigan consumer confidence dropped in October. The preliminary estimate showed that the consumer sentiment dropped slightly to 99 from 100.1 in September. However, it continues to be in line with fairly upbeat sentiment among consumers. The fall was widespread throughout subcategories; the current conditions index dropped 0.8 points, and the expectations index dropped 1.5 points.

The common factor that drove the fall in these indices was a less favourable perception among consumers of their personal finances. Moreover, the year-ahead inflation expectation was upwardly revised by one-tenth, to 2.8 percent, which softened real income expectations. The long-term inflation expectation, meanwhile, was downwardly revised by two-tenths, to 2.3 percent. The press release stated that the sharp sell-off in equities overlapped interviewing by just one evening, having virtually no influence on the early October data.

Looking into details, consumers’ assessments of current business conditions compared with last year continued to be upbeat, and the assessment compared with the past few months has improved. Meanwhile, business expectations for 2019 fell in the midst of a rise in those who expect in those who expect conditions to become ‘worse’.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 2.59611. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex