US consumer sentiment sours; dollar aiding inflation fight, Reuters, 10/13/23

[progree]

Summary

Consumer sentiment index falls to 63.0 in October
Inflation expectations rise
Import prices increase 0.1% in September
Core import prices fall 0.1%

WASHINGTON, Oct 13 (Reuters) - U.S. consumer sentiment deteriorated in October, with households expecting higher inflation over the next year, but labor market strength was likely to continue supporting consumer spending.

The third straight monthly decline in sentiment reported by the University of Michigan on Friday was across nearly all demographic groups and likely reflected a rise in gasoline prices, which has since reversed. Consumers' 12-month inflation expectations increased to a five-month high.

Sentiment was also likely hurt by violence in the Middle East, with the cutoff date for the survey Oct. 11, days after Palestinian Islamist group Hamas launched its attack on Israel. Other factors that could have weighed on morale include the continuing strike in the automobile industry and political dysfunction in Washington.

The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 63.0 this month compared with 68.1 in September. Economists polled by Reuters had forecast a preliminary reading of 67.2.

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It mentions that there is not much correlation between consumer sentiment and consumer spending. Retail sales will be reported this Tuesday.

From the source: http://www.sca.isr.umich.edu/

[NoMoreRepugs]

1. Consumers - economic metrics - Trump voters - need I say more?!