According to the University of Michigan’s Consumer Sentiment Index, consumer confidence improved in October to a reading of 60.6, after a 59.4 level in September. October 2010 had a reading of 67.7 however, well above the current level. The slight uptick from last month was due to optimism for the national economy. However, there was no improvement in how consumers viewed their financial prospects as three-quarters of consumers expected stagnating finances in October. The smallest proportion ever to expect income increases for next year was recorded this month at 38% of consumers.

Current economic policies are not doing will with 57% of all consumers judging current policies unfavorably, with 61% reporting less confidence in the Federal Reserve. The Expectations Index rose to 51.8 in October from 49.4 in September, well below October 2010’s 61.9 recording. The Current Conditions Index edged up slightly to 75.1 in the October from 74.9 in September.

Source: University of Michigan’s Consumer Sentiment Index