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Consumers not happy this month: Study
By CAROLINE FOSTER
Posted: 10/19/2009 8:19:33 PM

A survey conducted by Reuters and the University of Michigan suggests that U.S. consumer sentiment fell in October 2009 to 69.4 percent, after an upsurge the previous month.

September's figure of 73.5 was the highest such figure since January of 2008, said MarketWatch. Eric Lascelles, chief economics and rates strategist at TD Securities told that publication that there was "a very clear risk that the U.S. consumer will struggle to get up off the mat after taking a knockout blow over the past few years."

Numerous economic predictions soured at the news. Inflation estimates went higher and the stock market wobbled noticeably. MarketWatch said that the decline in consumers' future expectations was primarily to blame for the overall downturn in consumer sentiment.

Analysts say, however, that the news is not all bad. Industrial output has actually grown significantly, posting its first quarterly increase since 2007. The third quarter of 2009 saw a 7.1 percent jump, which is the largest since Q4 of 1999. Consumer goods, in particular, rose in the third quarter, rising 3.3 percent in that time period.




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