Consumer Sentiment Analysis
Consumer sentiment analysis revealed that in October, consumer sentiment increased, and gold prices fell to new daily lows.
The preliminary estimate of the University of Michigan’s consumer sentiment analysis survey increased to 59.8 from September’s 58.6. The numbers came in higher than anticipated, surprising analysts who had predicted a reading of 59.0.
Due to easing supply limitations, the purchasing circumstances for durables have improved by 23%. However, consumer sentiment has remained practically steady at 1.2 index points above September. The consumer sentiment analysis in the poll is currently 9.8 points above the record low seen in June. This rebound is still dubious due to a 3% drop in the expectations index from the previous month.
Inflation expectations are continuing on the rise across age, income, and education categories, according to the consumer mood survey. The study found that the inflation rate for the following year rose to 5.1% from 4.7% in the previous month.
As a result, October saw a slight increase in inflation forecasts for the next five years, with readings of 2.9% compared to 2.7% in September.
According to the research related to the Consumer sentiment analysis, “after three months of forecasting little rises in gas prices in the year ahead, both short and longer range estimates returned in October.”
In reaction to the mood data, the gold market moved down and achieved new daily highs. Gold futures for December delivery on the Comex exchange were last seen trading at $1,655.60 per ounce, down 1.28% on the day.
According to Paul Ashworth, director of Capital Economics’ North American operations, the current conditions index is primarily responsible for the increase in the headline index from 59.7% to 65.3%. It’s possible that the weather could turn bad again in November, so the recovery may be short-lived.
The indicator measuring optimism about the future fell. Consumer confidence is still at an all-time low, falling even farther than it did in the epidemic’s early days and matching the levels seen during the 2008 financial crisis. Despite being a poor predictor of actual expenditure in recent years, the lack of confidence is consistent with actual drops in consumer spending. Since petrol prices have just increased and the stock market has reached new lows, Ashworth predicts that consumers’ lack of faith may worsen further in the next month.
Featured Image- Megapixl @ Skazovdd
Author Shariq Khan 
