Consumer sentiment at nine-year low
Mixed opinion on whether the dropping consumer confidence will affect consumer spending this holiday season, according to this Reuters story in the San Jose Mercury News story:
The University of Michigan's final October consumer sentiment index fell to 80.6 from 86.1 in September, market sources said Friday. That was lower than forecasts for a reading of 81.1 and up only a sliver from the preliminary reading for October of 80.4 released two weeks ago.
Consumer spending, which drives about two-thirds of the U.S. economy, so far has remained healthy, in part due to the lowest interest rates and mortgage rates in more than a generation seen during the month.
But consumer sentiment has fallen for five straight months, raising concerns spending may cool right before the crucial retail holiday season.