NEW YORK, Oct
28 (Reuters) - The mood among U.S. consumers slipped to its worst in
around 13 years in October as concern persisted over the long-term effect
of high energy prices on the economy, a report showed on Friday.The
University of Michigan's final October index of consumer sentiment fell to
74.2 from September's final reading of 76.9 and from a preliminary 75.4
reading in early October, according to sources who saw the
subscription-only report.
A Reuters poll had shown Wall Street economists were projecting a
slight fall to 76.4 as consumers continue to worry about how Hurricanes
Katrina, Rita and Wilma will affect economic growth and the jobs market.
"It shows absolutely no post-Katrina rebound and it's the lowest since
the end of 1992," said John Canavan, a bond market analyst with Stone &
McCarthy Research Associates.
Financial markets reacted little to the data.
The survey's expectations component nudged lower to 63.2, its lowest in
over 13 years, from 63.3 in late September and 62.4 in early October.
"What's going on is Washington is not helping. The fragile nature of
the energy situation will continue to make people nervous," said Anthony
Chan, senior economist at JP Morgan Asset Management in Columbus, Ohio.
The index of current conditions fell sharply to 91.2 from 98.1 in
September and 95.7 in the early part of this month.
Confidence measures are often used as a gauge of future spending
patterns. Consumer spending makes up roughly two-thirds of overall U.S.
economic activity, and is seen as an indication of strength or weakness in
economic growth. (Additional reporting by Oliver Ludwig)
