US: University of Michigan’s consumer sentiment in focus - Nomura

Research Team at Nomura, notes that the US consumer sentiment softened in October, declining to 87.2 from 91.2 in September as the consumers reported less optimism about the outlook but were generally positive about current economic conditions.

Key Quotes

“Consensus expects a small change in the preliminary estimate in November and forecasts a reading of 87.9 from 87.2 in October. On inflation, the 5-10 year ahead inflation expectations edged lower to 2.4% from 2.6%, the lowest final estimate reading on record for this series. Further declines could raise concerns at the FOMC. But for now, FOMC officials have shrugged off short-term volatility in these numbers as other survey-based measures of inflation expectations have been little changed and market-based measures of inflation compensation have risen in recent months.”