United States consumer sentiment bounced back strongly in early October. It is stating that the country's economic recovery is still the same despite weak global demand. The weak global demand had always caused problems for the country's industries.
A quick return to the pervious condition in sentiment reported on Friday and highlighted robust domestic demand and anticipated that consumer spending will continue to support economic growth that has lowered significantly in past few months.
The University of Michigan said its consumer sentiment index jumped up to 92.1 points in October, while in September, it was 87.2. Millan Mulraine, deputy chief economist at TD Securities in New York, said, "This suggests that U.S. household sentiment has turned an important corner, and is a hopeful sign on the outlook for consumer spending activity going forward, given signs of weakness in other parts of the economy".
The jump in sentiment, which indicates cheaper gasoline prices, stated limited contact from recent stock market instability. Consumers were anticipated about their personal financial outlook since 2007.
Consumer spending accounts for more than 66% economic activity of the US. It has been dazzling spot in the US economy as industry can shake under the attack of decreasing global growth and the resurgent dollar, which have slowly decreased demand for goods made in the US.
The US economy is also being lowered down by a drop in capital investment in the energy industry. The reasons of the dropping are lower oil prices and efforts by businesses to reduce their inventories.
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