U.S. consumer confidence dropped to 46.3 in October, its economic present situation index hitting an all-time low, as inflation expectations heated up again.
56 minutes ago
US consumer confidence declined further in early October, with consumers’ assessment of current economic conditions hitting an all-time low as persistently high inflation strains American households’ finances. The preliminary survey released Friday by the University of Michigan showed that the October Consumer Sentiment Index fell to 46.3, its lowest level since May. Among its components, the Current Economic Conditions Index plummeted from 50.9 in September to 44.7, marking an all-time low on record. Meanwhile, the Consumer Expectations Index rose from 46.3 to 47.3, the first increase since July. US consumer confidence has continued to deteriorate amid sustained high gasoline prices, rising borrowing costs, and slowing hiring activity. The survey found that consumers expect prices to rise 4.7% over the next year, up from 4.6% in September. Long-term inflation expectations for the next 5 to 10 years rose to an average of 3.5%, slightly higher than September’s level. Joanne Hsu, director of the University of Michigan’s consumer surveys, said in a statement that this month, confidence indices dropped notably among low-income consumers and those with smaller stock portfolios.
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