Economic Takeaways of U.S. Consumer Sentiment, Factory Output
- University of Michigan gauge of confidence rose in October
- Fed reports second straight decline in factory production
Is There Trouble Ahead for U.S. Stocks?
What you need to know about Friday’s U.S. economic data:
The Takeaway: Consumers seem to be shaking off U.S. growth worries fueled by stock-market turmoil and softening foreign economies, instead turning their attention to prospects for income growth as the labor market continues to tighten. Households’ expectations for personal finances improved to their highest level since 2007, and some 48 percent of respondents projected good times for the economy over the next five years, up from 41 percent in September. Meanwhile, subdued inflation and borrowing costs are green lights for Americans planning to buy big-ticket goods such as cars and appliances. What’s more, consumers also showed a greater willingness to use credit or their savings for such purchases.