Consumer Sentiment Near Record Low in US
The University of Michigan index slipped as inflation worries and higher borrowing costs kept consumers cautious, with 70% expecting interest rates to rise.
- The University of Michigan's final sentiment index eased to 48 from 48.1 in Sept, marking a five-month low as high prices and rising interest rates depressed consumer morale.
- Persistent inflation, tepid hiring, and elevated mortgage rates caused consumer sentiment to deteriorate for Americans throughout Oct, as recent price increases have outpaced pay gains.
- Consumers expect prices to rise 4.7% over the next year, up from 4.6% in the previous month, while they also saw costs climbing at an annual rate of 3.5% over the next 10 years.
- Nearly 70% of consumers expect interest rates to rise in the year ahead, the highest in more than three years, while Sentiment among Democrats and Republicans improved somewhat.
- Director Joanne Hsu stated, "Consumers of all political persuasions agree that inflation is overwhelmingly the greater risk to the economy in the year ahead than unemployment." This consensus underscores inflation's dominance in economic concerns.
12 Articles
12 Articles
Missoulian
Consumer sentiment near record low in US
Consumer sentiment edged to near a record low in October as rising prices because of the Middle East conflict soured households' views of the economy on the doorstep of midterm congressional elections focused on affordability issues, a survey showed Friday.
That was influenced by rising prices and concerns about the cost of living, which are weighing on households ahead of congressional elections scheduled for Nov. 3, Reuters reported. The consumer sentiment index fell to 48 points, from 48.1 points in September, while economists polled by Reuters had expected 46.3 points. The October result is the second lowest since the beginning of the survey, and only the value of 44.8 points recorded in May, s…
US consumer confidence fell slightly in October and reached its lowest level in five months, pressured by high prices and rising interest rates. Read more
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