Consumer confidence increased in October, but less than expected.
The University of Michigan’s final consumer sentiment index was 90.
Economists had estimated that the final consumer sentiment index was 92.5, up a bit from the preliminary print of 92.1.
The Survey of Consumers’ Richard Curtin said in the report, “The entire October rebound from September was due to gains in confidence among lower income households, while confidence among households with incomes in the top third of the income distribution retreated a bit due to concerns about financial markets. Nonetheless, the overall impact from volatile stock prices has been quite small.”
According to last month’s report, which beat expectations, consumers shrugged off the recent market volatility as having more to do with international weakness than the domestic economy.
Curtin said consumers were more optimistic about their financial prospects in October than at anytime since 2007. And, long-term inflation expectations dropped to the lowest level in at least 25 years.