Today's early release of the Reuters/University of Michigan Survey of Consumers for October indicated an increase in consumer sentiment from the prior month with a reading of 83.1, the highest level seen since September 2007, and improvement on an annual basis with the level increasing a notable 36.68% while one year inflation expectations declined to 3.1%.
The Index of Consumer Expectations (a component of the Conference Board's Index of Leading Economic Indicators) rose to 79.5, and the Current Economic Conditions Index rose to 88.6.
It's important to recognize that consumer sentiment has seriously eroded over the past few months with the current results remaining near levels not seen since 1980, a major indication that consumers are in the process of tightening even further on spending.
