Dive Brief:
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The Michigan Survey of Consumers clocked consumer sentiment at 87.2, the lowest level since October, from 91.9 in August.
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The result shows that declines in consumer confidence are improving and bested Bloomberg survey expectations of 86.5.
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Consumer confidence could still be dinged by global economic stumbles though, according to the survey’s chief economist, director Richard Curtin.
Dive Insight:
This is a good news/ bad news report from the University of Michigan consumer sentiment index. While consumers have largely shrugged off recent global economic troubles, they do expect more fallout if those continue, Curtin says.
"The decline in optimism continued to narrow in late September as consumers increasingly concluded that the stock market declines had more to do with international conditions than the domestic economy,” Curtin wrote. "The true significance of these findings is not the diminished economic prospects, but that consumers now believe that global economic trends can directly influence their own job and wage prospects as well as indirectly via financial markets."
The boost in sentiment comes largely from wealthier Americans, according to the survey, another indication that the wage gap in the U.S. is an issue that will likely continue to plague retailers here.
