A sluggish job market and punishing stock market losses dented US consumer sentiment for a fifth straight month in early October, according to a survey.
The University of Michigan's preliminary October consumer sentiment index fell sharply to 80.4 from 86.1 in September, market sources said today. That was far below analysts' forecasts for a reading of 85.7.
The drop was led by a steep fall in the expectations index, which measures attitudes about the 12 months ahead, to 72.4 from 79.9. The current conditions index, which correlates more closely with spending, fell to 92.9 in October from 95.8.
So far, consumer spending, which drives about two-thirds of the US economy, has remained robust - in part from the lowest interest rates and mortgage rates in more than a generation.
But an earlier report that said retail sales fell 1.2 per cent in September provided evidence that pace is already slowing.
The University of Michigan preliminary consumer sentiment survey is based on telephone interviews with about 300 Americans across the country on personal finances and business and buying conditions.
It is rounded out with another 200 calls by month's end. The university releases the data directly to subscribers only and it is obtained through market sources.