US consumer sentiment falls in October to lowest level since May

By Ovunc Kutlu

ISTANBUL (AA) – US consumer sentiment fell in October to its lowest level since May, according to the University of Michigan's consumer survey’s preliminary results released Friday.

The index of consumer sentiment plummeted 5.1 percentage points to 63.0, from 68.1 in September. The market expectation for the index was to come in at 67.2.

"Consumer sentiment fell back about 7% this October following two consecutive months of very little change," Surveys of Consumers Director Joanne Hsu said in a statement.

"Assessments of personal finances declined about 15%, primarily on a substantial increase in concerns over inflation, and one-year expected business conditions plunged about 19%," she added.

Year-ahead inflation expectations rose from 3.2% last month to 3.8% this month.

"The current reading is the highest since May 2023 and remains well above the 2.3-3.0% range seen in the two years prior to the pandemic," said Hsu.

The index of current economic conditions decreased by 4.7 points to 66.7 in October, from 71.4 in September, according to the survey results.

The index of consumer expectations dove 5.3 points to 60.7, from 66.0, during that period.