US consumer sentiment falls to a five-month low in October; inflation expectations edge higher

Odaily: U.S. consumer sentiment slumped in early October as inflation continued to weigh on households, with views of current economic conditions dropping to a record low. According to a survey released by the University of Michigan on Friday, the preliminary consumer sentiment index fell to 46.3, the lowest since May and below the median economist estimate of 47.6. The current conditions index fell to 44.7 from 50.9 last month, the lowest on record. The expectations index rose to 47.3 from 46.3, its 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 at an annual rate of 3.5% over the next five to 10 years, also slightly above the September reading. Joanne Hsu, who oversees the survey, said in a statement that sentiment 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 different stances, consumers across the political spectrum believe the economic outlook has weakened compared with earlier this year, before the outbreak of the Iran conflict," Hsu said.