University of Michigan Reports the Preliminary Results of its Consumer Sentiment Index for October 2024

The University of Michigan on Friday (10-11-24), released the Preliminary results of its Consumer Sentiment Index (CSI) for October.

• The Index of Consumer Sentiment declined to a reading of 68.9 in October, down from September’s reading of 70.1. A month-over-month decrease of 1.7%, but up 8.0% year-over-year (63.8 in October 2023).
• The Current Economic Conditions for October fell to a reading of 62.7, down from a reading of 63.3 in September. A month-over-month decline of 0.9% and down 11.2% year-over-year (70.6 in October 2023).

• The Index of Consumer Expectations decreased to a reading of 72.9 in October, down from a reading of 74.4 in September. A month-over-month decline of 2.0% but up 22.9% year-over-year (59.3 in October 2023).

Dr. Joanne Hsu Ph.D., Surveys of Consumers Director, said consumer sentiment inched down a meager 1.2 index points in October, well within the margin of error, following two straight months of gains. Sentiment is currently 8% stronger than a year ago and almost 40% above the trough reached in June 2022. While inflation expectations have eased substantially since then, consumers continue to express frustration over high prices. Still, long run business conditions lifted to its highest reading in six months, while current and expected personal finances both softened slightly. Despite widespread news coverage about the Middle East and Ukraine, few consumers connected these developments to the economy. Concerns over these conflicts climbed this month but were relatively rare, mentioned spontaneously by less than 5% of consumers. With the upcoming election on the horizon, some consumers appear to be withholding judgment about the longer-term trajectory of the economy.