A significant improvement in consumer sentiment
In October 2023, consumer sentiment in the United States increased significantly, reaching its highest level in the last six months. This positive change was fueled by a more optimistic perception of purchase conditions, supported by more affordable financing costs. According to data provided by the University of Michigan, the final October index rose to 70.5 points, an increase from 70.1 points in the previous month and 68.9 points
in the preliminary reading.
Price and inflation forecasts
American consumers expect prices to rise at an annual rate of 2.7% in the coming year, keeping the same expectations as the previous month. In addition, they expect inflation to average 3% over the next five to ten years, down slightly from 3.1% in September. This scenario suggests some stability in economic expectations, which could encourage greater consumer spending.
Purchase conditions and impact of elections
The indicator relating to purchasing conditions for durable goods has reached a four-month high, with more than half of consumers expecting further reductions in interest rates in the coming year. This is a positive sign for the economy, as consumer spending is a key factor for economic growth. However, it’s important to note that low-income consumers continue to expect lower wage growth than those who earn more. The upcoming presidential elections in the United States, scheduled in less than two weeks, are affecting expectations and could have a significant impact on
general sentiment.