Conference Board: US consumer sentiment worsened in October

The US consumer sentiment index fell to 94.6 points in October, the lowest level since April, from 95.6 points in September. The average of analysts’ expectations was even weaker than the actual figure, 93.4 points, for October.

The survey quantifying consumer sentiment in index values ​​began in 1985. The index’s 100-point value reflects the situation in 1985.

Among the components of the index, the assessment of the current situation improved, while the assessment of the prospects deteriorated in October.

The sub-index quantifying the subjective assessment of the current situation increased by 1.8 points compared to the previous month, to 129.3 points.

The expectations index – which is based on consumers’ short-term, six-month outlook for income, business and the labor market – fell by 2.9 points, to 71.5 points, thus already It was below 80 for the ninth consecutive month.

A reading of the expectations index below 80 points, based on long-term experience, usually indicates an approaching recession, and the indicator fell below 80 points in February.

The monthly report measures basic consumer attitudes, purchasing intentions, vacation plans, and consumer expectations regarding inflation, stock prices, and interest rates.

In the United States, household consumption generates more than two-thirds of economic output, so economists pay close attention to consumer spending behavior when measuring the broader economy.