U.S. consumer sentiment falls to 17-month low

ANN ARBOR, Mich. – U.S. consumer sentiment fell this month to the lowest level since May 2006, the Reuters / University of Michigan Surveys of Consumers reported today, according to Bloomberg News.
In the university’s final report for October, the Consumer Sentiment Index fell to 80.9 points (2000 = 100 points). It lagged this month’s preliminary estimate of 82.0, issued Oct. 12, as well as the final September reading of 83.4. (READ MORE)
The decline was sharper than expected, based on the 82.0-point median estimate from a Bloomberg News survey of 62 economists. Their estimates ranged from 80 to 84 points.
“There’s still no outright collapse, but there is downward momentum in the confidence numbers and, by extension, spending numbers,” James O’Sullivan, a senior economist at UBS Securities LLC in Stamford, Conn., told Bloomberg News. “Housing is clearly the driver of the slowdown.”
The Reuters/University of Michigan Surveys of Consumers report is produced each month by the University of Michigan and distributed by Reuters. Additional information is available at www.sca.isr.umich.edu.