The University of Michigan's preliminary October consumer sentiment data was a huge upside surprise as consumers anticipated larger income gains and lower inflation.
The preliminary University of Michigan consumer sentiment survey for Oct. rose to 96.0 vs. 93.2 prior month.
Current economic conditions index rose to 113.4 vs. 108.5 last month.
Expectations index rose to 84.8 vs. 83.4 last month.
The big driver is real income expectations rose to their most favorable level in two decades...
Buying Conditions also rebounded...
While uncertainties about trade policies have continued to depress economic prospects, its negative impact has slightly lessened (cited by 29%, down from 36%). Importantly, the impeachment inquiry has not had a significant negative impact on economic prospect; it was negatively mentioned by about half as many as negatively mentioned the GM strike (3% versus 5%).
Even Democrats were forced to admit they are more confident in October...
However, Long term inflation expectations fell to 2.2% in early October, the lowest long term annual inflation rate recorded since this question began in 1979.
So - Americans expect record wage growth and record low inflation?