Consumer sentiment still struggling

Preliminary data showed that the University of Michigan’s Consumer Sentiment Index fell from 68.2 at the end of September to 67.9 in mid-October, below expectations.

Retail sales are rising as anxious consumers slowly part with the dollars in their wallets and purses, but the high level of unemployment and worries about job security are hampering confidence.



Interestingly, inflation expectations increased from 2.2% in September to 2.6% – still low but stabilizing.