A
report from the University of Michigan revealed on Friday the preliminary
reading for the Reuters/Michigan index of consumer sentiment fell 1.9 percent
m-o-m to 71.4 in early October.
Economists
had expected the index would come in at 73.1 this month, up from September’s
final reading of 72.8.
According
to the report, the index of current U.S. economic conditions declined 2.7
percent m-o-m to 77.9 in October from 80.1 in the previous month. Meanwhile,
the index of consumer expectations dropped 1.3 percent m-o-m to 67.2 this month
from 68.1 in September.
Surveys
of Consumers chief economist, Richard Curtin, noted that consumer sentiment had
remained for the past three months at the lows first recorded in response to
last year's shutdown of the economy. “The Delta variant, supply chain
shortages, and reduced labor force participation rates will continue to dim the
pace of consumer spending into 2022,” he added. “There is another, less
tangible factor that has contributed to the slump in optimism: confidence in
government economic policies has significantly declined during the past six
months.”