Both expectations and current conditions climbed in eyes of consumers
The numbers: The University of Michigan said its consumer sentiment index climbed to a 13-year high of 101.1 in October from 95.1 in September, topping the MarketWatch-compiled consensus of 95.
There were big gains in both the index for current economic conditions, which rose to 116.4 from 111.7, and expectations, which rose to 91.3 from 84.4.
What happened: The economic expansion, after eight years, is finally being noticed. Notably, the report said the gain was broadly shared among all age and income subgroups and across all partisan viewpoints. With low unemployment and low inflation, consumers aren’t necessarily thrilled but content with modest income gains.
The big picture: Consumers are content. But they’re not ecstatic. According to the surveys of consumers chief economist, Richard Curtin, the “as good as its gets” outlook is supported by a “moderation in the expected pace of growth in both personal finances and the overall economy, accompanied by a growing sense that, even with this moderation, it would still mean the continuation of good economic times.”
By STEVE GOLDSTEIN
Source: Marketwatch, October 2017
