Dow Jones Gains Ground on Unexpected Consumer Sentiment Data

The Dow Jones (DJIA) is trading higher on Friday after the University of Michigan released its October preliminary Index of Consumer Sentiment.

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The index came in at 55.0, slightly lower than September’s reading of 55.1, but still above the expectation for 54.0. At the same time, October’s reading is 22% lower than a year ago.

“Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds,” said Survey of Consumers Director Joanne Hsu. “At this time, consumers do not expect meaningful improvement in these factors.”

Consumers Shrug Off Government Shutdown amid High Inflation Expectations

Hsu added that the government shutdown, which is in its tenth day, has done little to affect consumers’ view of the economy.

Meanwhile, expectations of inflation remain elevated. The year-ahead expectation is at 4.6%, down from 4.7%, while the long-term expectation remains unchanged at 3.7%.

The University of Michigan will publish October’s final sentiment reading on Friday, October 24.

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