Despite a lessening of expected gains in nominal incomes in September, inflation expectations also declined, acting to offset concerns about declining living standards, with the 1 year inflation expectation dropping from 3.0% to 2.8%.
According to UMich chief economist Richard Curtin, consumers anticipated continued growth in the economy that would produce more jobs and an even lower unemployment rate during the year ahead.
Of note: buying conditions for both houses and vehicles posted a sharp rebound after declining inexplicably in recent months, and defying reports of near record optimism.
And yet, while consumers were somewhat more likely to anticipate that the economic expansion would continue uninterrupted over the next five years, nearly as many expected another downturn sometime in the next five years.
As one would expect, the largest problem cited on the economic horizon involved the anticipated negative impact from tariffs.