Consumer Sentiment:  October Reading Lowest Since 2014

October 28, 2016
Bottom Line: As we saw from the Conference Board's consumer confidence survey earlier this week, today's final reading from the University of Michigan's survey of consumer sentiment reveals a sharp deterioration in consumers' attitudes ahead of the election. Consumer sentiment was revised downward in late October to 87.2, sharply below September's final level of 91.2%. Sentiment had been slowly climbing for the past 5 years but has started to deteriorate in the past 6 months. The expectations component of the survey hit its lowest level since September 2014. Consumer Sentiment was REVISED DOWN by 0.7 points in late October to 87.2%, compared with market expectations for a small increase to 88.2%. Sentiment has deteriorated by -2.8 points over the past 3 months. With this month's modest decline, compared to September's final level of 91.2%, sentiment is 3.1% BELOW its year ago level. Current Conditions were REVISED DOWN by 2.3 points to 103.2%. Current conditions are now 0.9% ABOVE their year ago level. Consumer Expectations were REVISED UP by 0.2 points to 76.8%. Despite this month's moderate decline, compared to September's final level of 82.7%, expectations are 6.5% BELOW their year ago level.