Consumer Sentiment Bounced Back This Month
WASHINGTON -- Consumer sentiment bounced back a bit this month as the nation began to adjust to both the aftereffects of the Sept. 11 terrorist attacks and the U.S. air strikes on Afghanistan.</br></br>The University of Michigan's consumer-sentiment index rose to 83.4 in mid-October from 81.8 at the end of September and well above the low of 72 recorded in one week late in September. The latest number was close to the 83.6 reading in mid-September.</br></br>The university's survey showed that consumers are feeling more optimistic about the future, with the index for consumer expectations rising to 77.9 in mid-October from 73.5 at the end of September and 77.2 in mid-September.</br></br>The latest economic numbers, meanwhile, seemed to tell less about where the country is headed than where it had been after the terrorist attacks. Wholesale prices rose 0.4% in September from August, according to the Labor Department. In a separate report, the Commerce Department said retail sales plunged 2.4% last month, which was largely expected because of the terrorist attacks. "Everyone was home watching television the week of the 11th," said Bryan Jordan, an economist with Banc One Investment Advisors. "If we're looking for a silver lining in these numbers, it's that pipeline pressures continue to be well-behaved, and I think that does signal lower inflation."</br></br>The Federal Reserve's policy-making committee isn't likely to see September's producer prices as a significant factor when it meets next month, Mr. Jordan said. He predicted at least one more round of interest-rate cuts as policy makers continue to try to prod the economy toward recovery.