CONSUMER SENTIMENT, MANUFACTURING INDEX, CONSTRUCTION INDEX

A variety of recent reports on the economy show it is still strong with GDP growth in the quarter up nicely at 3.0%*  I urge you to read these three articles discussed below in their entirety.  As a result, stock market indices continue to hit new highs.  Some consider the value of stock market indices to be dangerously high, but I find it hard to tell what with all the good economic news.

The consumer sentiment index, a survey of consumers by The University of Michigan, hit 100.7 in October, slightly below estimates of 100.9, according to economists polled by Reuters.

Earlier this month, the key economic indicator leaped 6.3 percent to 101.1, demolishing the record previously set in August*.

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"Lingering doubts about the near term strength of the national economy were dispelled," said Richard Curtin, Survey of Consumers chief economist. "More than half of all respondents expected good times during the year ahead and anticipated the expansion to continue uninterrupted over the next five years."*

The Consumer Sentiment Index graph for the last year is given below.**

(Click on figure to enlarge)

The ISM Manufacturing Index for October (58.7) was down from September (59.8) but still higher than any  recent previous month.***
The Institute for Supply Management's index registered 58.7 in October, slightly better than the 58.6 expected from economists polled by Reuters. That represents a decline from September's 59.8, which was the highest reading for the service sector index since August 2005, according to ISM.

(click on figure to enlarge)

There was an increase in construction spending in September by 0.3% was considered a surprise.***
U.S. construction spending unexpectedly rose in September as a surge in public construction outlays offset the third straight monthly decline in investment in private projects.***

(click on figure to enlarge)


* https://www.cnbc.com/2017/10/27/first-reading-on-third-quarter-gdp-up-3-point-0-percent-vs-2-point-5-percent-rise-expected.html
** https://www.cnbc.com/2017/10/27/october-2017-us-consumer-sentiment-index.html
https://www.cnbc.com/2017/10/24/three-charts-prove-bull-market-has-more-room-to-run-bofa-technician.html
https://www.cnbc.com/2017/10/31/consumer-confidence-october.html
*** https://www.cnbc.com/2017/11/01/october-ism-nonmanufacturing-index-september-construction-spending.html