Univ of Mich Consumer Sentiment (Prelim)
The final relevant economic release comes 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 an unchanged reading of 48.1. A much lower reading would be considered favorable news for bonds and mortgage rates because waning consumer confidence usually translates into slower economic growth.