Street Calls of the Week
Investing.com - U.S. consumer sentiment was little changed in October, but better than anticipated, while one-year inflation expectations ebbed yet remained elevated.
A monthly report from the University of Michigan showed that its consumer sentiment index came in at 55.0, compared to 55.1 in September. Economists had predicted a reading of 54.1.
Improvements in current personal finances and year-ahead business conditions were offset by declines in expectations for household pocketbooks and buying conditions for durable goods, said Joanne Hsu, Surveys of Consumers Director at the University of Michigan.
"Overall, consumers perceive very few changes in the outlook for the economy from last month. Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds. At this time, consumers do not expect meaningful improvement in these factors," Hsu added.
One-year inflation expectations for ticked down to 4.6% from 4.7%, while long-run projections for price gains held steady at 3.7%. Both figures were roughly midway between where they were a year earlier and highs seen in April and May after President Donald Trump announced his sweeping tariff agenda.
Meanwhile, there was minimal evidence that an ongoing federal government shutdown, which has entered its second week, has swayed consumers’ views of the economy, Hsu said.
The economic calendar has been largely quiet since the federal government shutdown delayed the release of key official indicators.
Should lawmakers in Washington fail to resolve a now more than week-old standoff, more numbers could be postponed, namely crucial U.S. inflation data next week. Media reports have said the Bureau of Labor Statistics, the agency responsible for putting together the inflation figures, is planning to bring back furloughed workers to get the data out, although the exact date when it would be published was unclear.
A lack of fresh trackers of prices and job growth has particularly complicated how the Federal Reserve plans to approach future interest rate decisions. The central bank slashed rates by 25 basis points last month and signaled that it could roll out further drawdowns this year, but without up-to-date data, the timing and scope of these moves remains murky.
Instead, policymakers and investors alike have turned to secondary or alternative sources of information, such as the University of Michigan survey.