US: Michigan Consumer climate worsens significantly more than expected

Michigan (dpa-AFX) – US consumer sentiment deteriorated surprisingly sharply in October. The consumer sentiment survey by the University of Michigan fell to 63.0 points from 68.1 points in the previous month, according to preliminary estimates the university reported on Friday. Analysts on average expected a decline of only 67.0 points.
The current situation is rated much worse than the previous month. Consumer expectations have also deteriorated significantly. Analysts expected only a small decline in both surveys.

Consumer inflation expectations rose. In a one-year period, they increased from 3.2 percent to 3.8 percent. It was expected to be unchanged at 3.2 percent.

Long-term inflation expectations have also increased. Accordingly, the inflation rate is expected to be around 3.0 percent over the next five to ten years. A flat rate was also expected here, i.e. 2.8 percent.

In the US, inflation expectations are particularly focused after the US Federal Reserve Bank makes future interest rate decisions based on developments in economic data. Over the past few days, several central bankers have spoken out in favor of keeping key interest rates steady.

The University of Michigan indicator measures the purchasing behavior of American consumers. It is based on a telephone survey of around 500 households. A financial and economic assessment of the situation and associated expectations is requested./la/he

Source: dpa-AFX