Consumer sentiment in the U.S. unexpectedly improved in the month of October, according to revised data released by the University of Michigan on Friday.
The University of Michigan said its consumer sentiment index for October was upwardly revised to 70.5 from a preliminary reading of 68.9. Economists had expected the index to be upwardly revised slightly to 69.0.
With the bigger than expected upward revision, the consumer sentiment index is now modestly above the final September reading of 70.1.
The consumer sentiment index has now increased for the third consecutive month, reaching its highest level since hitting 77.2 in April.
“This month’s increase was primarily due to modest improvements in buying conditions for durables, in part due to easing interest rates,” said Surveys of Consumers Director Joanne Hsu.
The current economic conditions index rose to 64.9 in October from 63.3 in September, while the index of consumer expectations edge down to 74.1 in October from 74.4 in September.
The report also said year-ahead inflation expectations were unchanged from last month at 2.7 percent, falling within the 2.3-3.0 percent range seen in the two years prior to the pandemic.
Meanwhile, long-run inflation expectations edged down to 3.0 percent in October from 3.1 percent in September but remain modestly elevated relative to the range of readings seen in the two years pre-pandemic.
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