U.S. Consumer Sentiment Falls to 46.3 in Early October as Inflation Expectations Rise
The University of Michigan consumer sentiment index fell to 46.3 in early October from 48.1 in September, below forecasts, as households reported mounting frustration over the cost of living and nudged inflation expectations higher.
U.S. consumer sentiment weakened further in early October as higher prices linked to the Middle East conflict weighed on household views of the economy, according to a University of Michigan survey released Friday.
The Surveys of Consumers index fell to 46.3 in early October from a final reading of 48.1 in September, according to the university. Economists polled by Reuters had forecast a reading of 47.8.
Cost-of-living frustration broadens
Joanne Hsu, director of the Surveys of Consumers, according to Reuters, said frustration over the cost of living continues to mount and that consumers across the political spectrum believe the trajectory of the economy has weakened since the beginning of the year.
Hsu, according to Reuters, said sentiment fell steeply this month among lower-income consumers and those with smaller stock portfolios, groups she described as having fewer resources to weather price increases.
Inflation expectations edge higher
The survey’s one-year inflation expectations rose to 4.7% from 4.6% in September, according to Reuters. The report noted that twelve-month inflation expectations have climbed from 3.4% in February, before the U.S.-Israeli war with Iran began.
Expectations for inflation over the next five years also rose, to 3.5% from 3.4% in September, according to Reuters.
Reporting based on coverage by Reuters.
