Investing.com — U.S. consumer sentiment dropped in October as households in the world’s biggest economy braced for elevated inflation over the coming year, according to a survey on Friday.
The preliminary reading of the University of Michigan’s overall index of consumer sentiment dipped to 63.0, down from 68.1 in September. Economists had seen the figure at 67.2.
“Nearly all demographic groups posted setbacks in sentiment, reflecting the continued weight of high prices,” said Joanne Hsu, the director of the University of Michigan’s Surveys of Consumers, in a statement.
Hsu also noted that year-ahead inflation expectations climbed to 3.8% this month — the highest mark since May 2023 and well above the range of 2.3%-3.0% common in the two years prior to the COVID-19 pandemic.