Consumer Confidence Unexpectedly Jumps In October
Consumer confidence came in at 86.4, beating expectations, according to the preliminary October report on consumer confidence from the University of Michigan.
Expectations were for the reading to fall slightly to 84 from last month's 84.6.
The report's economic conditions sub-index held steady from last month at 98.9, while the economic outlook sub-index rose to 78.4 from 75.4 last month.
Following the report, Ian Shepherdson at Pantheon Macro said, " In one line: Predates stock correction, but in any event cheaper gas should offset the stock hit."
Shepherdson added that, "Expectations are sensitive to gas prices, so the recent drop seems already to be lifting the index. Looki ng ahead, we think the drag on consumers' confidence from the correction in stock prices will be offset, more or less, by the further positive impact from the plunge in gasoline prices, kee ping the headline index broadly unchanged. Either way, remember that what really matters is spending, not sentiment, and the kick from cheaper gas will far outweigh the stock price hit. We expect a hugely strong holiday shopping season; the plunge in gas prices could not have been better timed."
More From Business Insider
