U.S. October Consumer Confidence Index Falls to Five-Month Low; Inflation Expectations Edge Up

US consumer sentiment slid in early October as inflation continued to weigh on households, with views of current economic conditions dropping to a record low, according to a University of Michigan survey released on Friday. The preliminary consumer sentiment index fell to 46.3, the lowest since May and below the median estimate of 47.6 in a Bloomberg survey of economists. The current conditions gauge fell to 44.7 from 50.9 last month, the lowest on record. The expectations measure rose to 47.3 from 46.3, the first increase since July. Consumers expect prices to rise 4.7% over the next year, slightly above last month's 4.6%. They expect prices to rise 3.5% annually over the next five to 10 years, also slightly above September's expectation. Joanne Hsu, who oversees the survey, said in a statement that confidence fell sharply this month among lower-income consumers and those with smaller stock portfolios. Rising confidence among Democratic and Republican supporters was offset by declining confidence among independents. "Despite their differing stances, consumers of all political persuasions believe the economic outlook has weakened compared with earlier this year, before the outbreak of the Iran conflict," Hsu said.