Univ of Mich Consumer Sentiment (Prelim)
There is no relevant economic data coming today due to the government shutdown delaying the weekly unemployment update. This week’s sole release will come at 10:00 AM ET tomorrow morning, when the University of Michigan posts their Index of Consumer Sentiment for October. It will give us an indication of consumer confidence, which helps us measure consumer willingness to spend. If a consumer is more confident in their own financial situation, they are more apt to make large purchases in the near future. On the other hand, if they are growing more concerned about their job security or finances, they probably will delay making that large purchase. This influences future consumer spending data and, therefore, can impact the financial markets. It is expected to show a reading of 54.5, meaning confidence was a bit softer than September's 55.1. A larger decline would be considered favorable news for bonds and mortgage rates because waning consumer spending usually translates into slower economic growth.