US UoM Consumer Confidence Index Falls To 63 In October Against 67.4 Expected

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The University of Michigan’s (UoM) Consumer Confidence Index fell to 63 from 68.1 in September, indicating that consumer morale in the US continued to deteriorate in October. This number was below the market’s forecast of 67.4.

According to additional information on the release, the Current Conditions Index dropped from 71.4 to 66.7, and the Expectations Index dropped from 66.9 to 60.7.

Inflation expectations for the next year increased from 3.2 to 3.8, while those for the next five years increased from 2.8% to 3%.

As U.S. economic indicators indicate a rising risk of stagflation and consumer confidence continues to decline while inflation expectations climb substantially, the gold market is holding onto solid gains Friday.

The preliminary reading of the Consumer Sentiment Index, published by the University of Michigan on Friday, dropped from September’s reading of 68.1 to 63. The report was far weaker than anticipated, as economists had predicted a decline to 67.2.

“Consumer sentiment fell back about 7% this October following two consecutive months of very little change. Assessments of personal finances declined about 15%, primarily on a substantial increase in concerns over inflation, and one-year expected business conditions plunged about 19%.

However, long-run expected business conditions are little changed, suggesting that consumers believe the current worsening in economic conditions will not persist,” said Joanne Hsu, director of Surveys of Consumers, in the report.

After reading this news, the US Dollar Index moved a little bit higher and was last seen making a tiny daily gain at 106.62.