According to the Reuters/University of Michigan index, consumer sentiment fell sharply in October, plunging from 73.5 to 69.4 throughout the course of the month. The result is worse than analysts expected, as the average analyst estimate for the state of consumer sentiment this month was 72.0, signaling that the economy might be more difficult to predict than would be hoped.
September’s consumer sentiment level marked an 8 point jump to its highest level since January 2008 and a moderate decline from that number was expected as a natural part of economic recovery. Analysts say that the drop indicates that the U.S. …read more

According to recently released data from the Commerce Department and the Reuters/ University of Michigan Surveys, consumer spending rose slightly in July thanks to the government’s Cash for Clunkers program. However, the same data also showed a slight decrease in consumer sentiment, highlighting the pressure from falling wages and rising unemployment.
 
The Commerce Department reports that consumer spending rose 0.2 percent in July off of strong auto sales, a number that gelled with analyst expectations and gave support to the theory that consumers are willing to spend money if the right incentives are introduced. Analysts worry, though, that the increase in …read more