The Trump boom ain’t dead yet.
American optimism about the economy surged in October, fueled by the best expectations for income gains in two decades.
The University of Michigan’s Consumer Sentiment Index rose to 95.5 this month from 93.2 in September. That is the highest level in three months.
“The focus of consumers has been on income and job growth, while largely ignoring other news,” Richard Curtin, the survey’s chief economist, said in a statement. “The most spontaneous references were to the negative impact of tariffs, which fell to 27 percent in October from last month’s 36 percent; the impeachment inquiry totaled just 2% in October, less than the 5% who mentioned a negative impact from the GM strike.”
Prior to the midmonth preliminary report from the University of Michigan, which saw the index rising to 96, economists surveyed by Econoday had forecast a decline to 92.
“Sentiment rebounded in early October as consumers anticipated larger income gains and lower inflation during the year ahead. As a result, real income expectations rose to their most favorable level in two decades,” Richard Curtin, the survey’s chief economist, said in a statement issued after the midmonth report.
The index’s current situation component rose sharply in the first weeks of September, hitting 113.2 from 108.5, the highest level this year. The expectations component, which asks consumers to forecast conditions six months from now, ticked up from 83.4 to 84.2.