Investing.com – U.S. consumer sentiment increased more than expected in October, boosting optimism over the American economy, according to a report published on Friday.
The preliminary publication of the data for September from the University of Michigan's Consumer Survey Center showed that consumer sentiment jumped to 101.1 from 95.1 in the previous month.
Analysts had forecast the reading to fall to 95.0.
The current conditions indicator advanced to 116.4 in October, from the previous 111.7
Consumer expectations rose to 91.3 in October, from the prior reading of 84.4.
Meanwhile, inflation expectations for the next 12 months declined to 2.3%.
Consumers do not expect an economic downturn anytime soon, with a positive outlook for consumer spending that would mark the second longest expansion since the mid 1800s, said University of Michigan Chief Economist Richard Curtin.
"While the early October surge indicates greater optimism about the future course of the economy, it also reflects an unmistakable sense among consumers that economic prospects are now about as good as could be expected," he said.
Despite the optimism, consumers seem to have accepted slower growth to living conditions, as they anticipate low unemployment, low inflation and modest income gains, Curtin added.
After the report, EUR/USD was trading at 1.1862 from around 1.1866 ahead of the release of the data, GBP/USD was at 1.3314, compared to 1.3320 previously, while USD/JPY was at 111.83 from 111.76 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 92.68 compared to 92.64 before the report.
Add a Comment