Ahead of the US midterm elections, the consumer sentiment index is near a historic low

Odaily reports: A survey released on Friday showed that the US consumer sentiment index edged down in October to near a historic low, as the Middle East conflict drove prices higher, turning households pessimistic about the economic outlook just as congressional midterm elections centered on affordability issues approach.

The University of Michigan's consumer survey showed that its consumer sentiment index fell this month to 48.0 from a final reading of 48.1 in September. Economists surveyed by Reuters had forecast the index at 46.3, which was also the preliminary reading for October. The October reading is the second lowest on record, above only the all-time low of 44.8 set in May—a low that came shortly after the outbreak of the Iran war. "Purchasing power continues to dominate consumers' views of the economy," said Joanne Hsu, director of the consumer survey program. "The current consumer sentiment index is 10% lower than a year ago and 15% lower than in February, before the Iran conflict broke out."