Consumer Confidence Slips Again in October

The University of Michigan consumer confidence survey showed further erosion, falling to 82 in October, the lowest level in over a year. The index finished September at 83.4. Expectations, which are used as a proxy for future spending, fell to 71.6, as concerns about the economy weigh on consumers. But a bright spot was the view of current conditions, which actually rose slightly to 98.2. This question is based on peoples' perceptions of the current financial situation and whether it is a good time to buy expensive items, such as a car.

One year inflation expectations eased to 3% versus 3.1% last month. Longer-term inflation expectations also eased by a tenth to 2.8% over the next five years.

This preliminary look at Octobers' figures includes about 60% of the final survey responses.