WASHINGTON (dpa-AFX) - The University of Michigan released a report on Friday showing consumer sentiment in the U.S. deteriorated by far less than previously estimated in the month of October.
The report said the University of Michigan's consumer sentiment index for October was upwardly revised to 48.0 from a preliminary reading of 46.3.
While the index is still down slightly from September's 48.1, economists had expected the preliminary reading to be unrevised.
The unexpected upward revision to the headline index partly reflected a bigger than previously estimated improvement in consumer expectations.
The report said the index of consumer expectations was upwardly revised to 48.8 compared to the preliminary estimate of 47.3 and September's 46.3.
The current economic conditions index for October was also upwardly revised to 46.7 from 44.7 but is still down from 50.9 in September.
'While year-ahead business conditions improved about 14%, they stand 16% less than last October's read,' said Surveys of Consumers Director Joanne Hsu.
She added, 'This month's decline in the Current Conditions subindex was driven entirely by buying conditions for durables, which plunged 18% on the basis of higher interest rates and rising concerns about the affordability of such purchases.'
With regard to inflation expectations, the University of Michigan said year-ahead inflation expectations ticked up to 4.7 percent in October from 4.6 percent in September.
Hsu noted the current reading substantially exceeds the 3.4 percent seen in February before the Iran conflict began, along with all 2024 readings.
Long-run inflation expectations also crept up to 3.5 percent in October from 3.4 percent in September, notably higher than their 2024 range of 2.8 to 3.2 percent, the report said.
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