Consumer Sentiment Rises to 13-Year High in October

Consumer Sentiment jumped 5.6 points in October to 100.7, according to the University of Michigan Consumer Sentiment Index. Last month’s figure is 15.5% higher than the October 2016 index.

The Current Economic Conditions Index grew 4.8 point to 116.5, 12.9% higher than the October 2016 estimate. The Consumer Expectations Index increased 6.1 points to 90.5, 17.8% higher than a year ago.

“Consumer sentiment slipped ever so slightly in late October, despite remaining at its highest monthly level since the start of 2004. This is only the second time the Sentiment Index has been above 100.0 since the end of the record 1990’s expansion, and its average during the first ten months of 2017 (96.7) has been the highest since 2000 (108.5),” said Richard Curtin, chief economist of UM Surveys of Consumers. “Personal finances were judged near all-time record favorable levels due to gains in household incomes as well as decade highs in home and stock values. Lingering doubts about the near term strength of the national economy were dispelled as more than half of all respondents expected good times during the year ahead and anticipated the expansion to continue uninterrupted over the next five years.”

Read the University of Michigan Surveys of Consumers release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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