US consumer sentiment falls in October amid weaker durables outlook
US consumer sentiment slipped slightly in October, according to an advanced estimate from the University of Michigan, easing by 1.8 points to 46.3, as modest improvements in year‑ahead expectations were outweighed by weaker views on buying conditions for big‑ticket items.
October's preliminary reading showed that Democrats and Republicans recorded small gains in sentiment, but this was offset by a decline among independents, while confidence fell sharply for lower‑income households and those with smaller stock holdings - groups more exposed to rising living costs.
Respondents across the political spectrum continued to express frustration over high prices and said they believed the economy's trajectory had weakened since the start of the year.
Inflation expectations edged higher, with the year‑ahead measure rising to 4.7% from 4.6%, well above the 3.4% level seen in February before the Iran conflict and above all 2024 readings.
Long‑run expectations also ticked up to 3.5% from 3.4%, remaining notably above last year's 2.8% to 3.2% range. Both short‑ and long‑term expectations increased for a second consecutive month, reaching their highest levels since May.
Reporting by Iain Gilbert at Sharecast.com