US Consumer Sentiment Holds Steady as Inflation Expectations Rise

US consumer sentiment barely changed in October, even as households expected faster price rises. The University of Michigan's final survey, released on Friday, 23 October, put its headline index at 48.0, against 48.1 in September.

The final figure was higher than the preliminary estimate of 46.3. It remained well below the 53.6 reading a year earlier, showing little improvement in households' views of the economy.

Expectations for inflation over the next year rose to 4.7% from 4.6% in September. Long-run inflation expectations increased to 3.5% from 3.4%. Both measures rose for a second month.

Survey director Joanne Hsu said purchasing power remained central to consumers' concerns. Buying conditions for durable goods fell 18%, with respondents pointing to higher interest rates and difficulty affording major purchases.

The survey's current-conditions index fell to 46.7 from 50.9, while its expectations index rose to 48.8 from 46.3. These readings describe consumer perceptions; inflation expectations are not an official inflation reading or a guarantee of future price changes.

Sources: Reuters via MarketScreener; University of Michigan final October survey.

Archival photo: Produce at a grocery store in Michigan, 2018. Kurt Kaiser / Wikimedia Commons, CC0 1.0. Cropped to 16:9 by Morval Universal.