There's good news and bad news. On the bright side, University of Michigan Consumer Sentiment rose from 87.2 in September to 90.0 in October, the first bounce in 4 months. On the not so bright side, the 90 final print is a significant drop from the 92.1 preliminary read (especially in light of equity's ongoing exuberance). Inflation expectations (short- and long-term dropped). The biggest driver of the bounce from September was, of course, hope - Future Conditions rose from 78.2 to 82.1 - while current conditions only rose from 101.2 to 102.3 (plunging from 106.7 prelim).
Not as awesome as it seems...
- *CURTIN SAYS CONSUMERS HAVE LOWER ASPIRATIONS TO SPEND
- *CURTIN: LONG-TERM INFLATION EXPECTATIONS MATCH RECORD LOW
- *MICHIGAN'S CURTIN SENTIMENT GAIN LED BY LOWEST INCOME GROUP
- *CURTIN SAYS CONSUMERS AWARE INCOMES WILL REMAIN CONSTRAINED
Bounce, but not much..
[5]
As expectations of good times ahead slide...
[6]
Expectations of higher incomes dropped to 4 months lows, and fewer respondents believe interest rates will rise in the next 12 months.
And then Curtin unleashed the following...
- *CURTIN SAYS `DISINFLATIONARY MINDSET' IS TAKING HOLD
[7]
- *CURTIN SAYS CONSUMERS CHANGED `YARDSTICK' IN MEASURING PRICES
- *CURTIN SAYS CONSUMERS DEMANDING DISCOUNTS IN ORDER TO SPEND
- *MICHIGAN'S CURTIN SAYS CONSUMERS DISAPPOINTED WITH DISCOUNTS
- *CURTIN SAYS INFLATION YARDSTICK NOW SIMILAR TO 1950S/1960S
- *CURTIN SAYS ANY INCREASE IN INFLATION WILL HARM CONSUMERS
With a final warning...
- *CURTIN: FED NEEDS TO BE CONCERNED ABOUT BOTH SIDES OF INFLATION
Charts: Bloomberg
