Consumer sentiment drops in October

New York City The Reuters/University of Michigan Surveys index of Consumer Sentiment reversed direction and experienced a notable decline in October compared to the previous month.

The Reuters/University of Michigan Surveys index of Consumer Sentiment reversed direction and experienced a notable decline in October compared to the previous month.

 The report showed that the consumer sentiment index fell to 69.4 in October from the final September reading of 73.5. Economists had been expecting a much more modest decrease to a reading of 73.3.

"While consumers still anticipated gains in the general economy and now think that the unemployment rate is close to its cyclical peak, there has been no improvement in consumers' dismal assessments of their personal financial situation," the report said.

The disappointing consumer sentiment report helped drive down U.S. stocks on Friday, ending a four-day rally that had driven the market to year highs. Government bonds, which investors prefer during times of economic weakness, had a strong rally.