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Consumer Sentiment


Following are comments from economists and market experts after the University of Michigan's preliminary reading of consumer sentiment in October tumbled to 80.4 from 86.1 in September.

The drop, which was led by the future expectations index, was steeper than the 85.7 reading that Wall Street analysts surveyed by Reuters were expecting.

LAKSHMAN ACHUTHAN, MANAGING DIRECTOR, ECONOMIC CYCLE RESEARCH INSTITUTE, NEW YORK:

"I think a critical thing is expectations. And if the words that they provide in this survey begin matching consumers' actions -- meaning that they stop buying homes and cars -- then this one leg that's been keeping the economy up is going to buckle.

That's what we have to watch. I've seen these consumer surveys weakening, except they've still been buying houses and cars. There's very little margin for error here. Both consumers and business managers are having their confidence tested not only by the economy but also by the geopolitical uncertainty."