US consumer sentiment hits 46.3 in October as Middle East conflict fuels price worries
US consumer sentiment fell to 46.3 in early October from 48.1 in September, the University of Michigan survey showed, as rising prices linked to the Middle East conflict weighed on households. Inflation expectations for the year ahead edged up to 4.7 per cent.
US consumer sentiment deteriorated further in early October as rising prices caused by the Middle East conflict soured households' views of the economy, a survey showed on Friday.
The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index dropped to 46.3 this month from a final reading of 48.1 in September. Economists polled by Reuters had forecast the index at 47.8.
"Frustration over cost-of-living continues to mount, as consumers across the political spectrum believe that the trajectory of the economy has weakened since the beginning of the year," said Joanne Hsu, the director of the Surveys of Consumers. "Overall, sentiment for lower-income consumers and those with smaller stock portfolios dropped steeply this month, groups that have fewer resources to weather increases in prices."
The survey's measure of consumer expectations for inflation over the next year nudged up to 4.7 per cent from 4.6 per cent in September. Twelve-month inflation expectations have surged from 3.4 per cent in February before the US-Israeli war with Iran started.
Consumers' expectations for inflation over the next five years rose to 3.5 per cent from 3.4 per cent in September.