Consumer Sentiment Sluggish

Reuters details Friday's Michigan Consumer Sentiment release:

U.S. consumer sentiment fell unexpectedly this month on persistent worries that the "dismal" state of personal finances would not recover quickly from the worst recession in decades, a report showed on Friday.

The Reuters/University of Michigan Surveys of Consumers said its preliminary index of sentiment for October fell to 69.4, from September's 73.5. That was below economists' median expectation of a steady reading of 73.5, according to a Reuters poll.

The report said diverging prospects for the general economy and personal finances would have a negative impact on the pace of the recovery, with consumers eager to increase their savings and pay down debts.

Source: St. Louis Fed

German Investor Confidence "Unexpectedly" Fell

Bloomberg loves the term "unexpected":

German investor confidence unexpectedly fell in July, suggesting the recovery in Europe’s largest economy may take longer to materialize.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months ahead, declined to 39.5 from 44.8 in June. Economists expected a gain to 47.8, the median of 36 forecasts in a Bloomberg News survey showed.

The government says gross domestic product will plunge 6 percent this year, the most since World War II, even as the economy shows signs of stabilizing after its first-half freefall. Industrial output jumped 3.7 percent in May from April, the biggest gain in almost 16 years, and business confidence increased for a third month in June. The benchmark DAX share index has advanced 30 percent in the past four months.

Source: ZEW.DE