US consumer sentiment near record low ahead of midterm elections
SPY•The University of Michigan’s Consumer Sentiment Index edged down to 48.0 in October from 48.1 in September, its second-lowest reading on record. One-year inflation expectations rose to 4.7% from 4.6%, while five-year expectations increased to 3.5% from 3.4%.
1. Sentiment remains weak
The University of Michigan’s Consumer Sentiment Index fell to 48.0 in October from 48.1 in September, but was above economists’ forecast of 46.3. The reading was the second-lowest on record, after 44.8 in May.
2. Inflation expectations rise
Consumers’ one-year inflation expectations edged up to 4.7% from 4.6% in September, and five-year expectations rose to 3.5% from 3.4%. Survey director Joanne Hsu said purchasing power continued to dominate consumer views, with sentiment 10% below a year earlier and 15% below February.
3. Independents lead decline
Sentiment among respondents identifying as independents fell to 42.4 from 47.7 in September, just above May’s record-low 40.6. Scores for Democrats and Republicans improved.
