U.S. Consumer Sentiment Rebounds; Industrial Output Weak

[Purveyor]

Source: Reuters

By Lucia Mutikani

WASHINGTON, Oct 16 (Reuters) - U.S. consumer sentiment rebounded strongly in early October, suggesting that the economic recovery remained on track despite headwinds from a strong dollar and weak global demand that have weighed on the industrial sector, particularly manufacturing.

The snapback in sentiment reported on Friday underscored robust domestic demand and offered hope that consumer spending would remain solid enough to support economic growth, which has slowed significantly in recent months.

The University of Michigan said its consumer sentiment index rose to 92.1 in early October from a reading of 87.2 September. The survey's current conditions sub-index shot up to 106.7 this month from 101.2 in September.

The index at current levels has historically been consistent with roughly a 4 percent annualized rate of consumer spending growth, according to economists.

Read more: http://www.reuters.com/article/2015/10/16/usa-economy-idUSL1N12G0QF20151016

[Nay]

1. Well, that's interesting, because just this morning on public radio the

Market Report said that consumers were NOT spending the extra money they were getting from low gas prices. In fact, a bank survey revealed that the $$ in small checking/savings accounts was noticeably growing, indicating that people were saving money for the rainy day they know would come.

So the report above tries to equate a rebound in consumer sentiment with more consumer spending, when they are not the same, and presently are not even linked.