US Consumer Sentiment Remains Subdued on Job, Price Concerns
US consumer sentiment was little changed in early October as Americans expect scant improvement in the job market or inflation.
The preliminary October sentiment index edged down to 55 from 55.1 in September, according to the University of Michigan. While the latest figure was the lowest in five months, it was firmer than the median projection in a Bloomberg survey of economists.
Consumers expect prices to rise at an annual rate of 4.6% over the next year, compared with 4.7% a month earlier, according to the data released Friday. They saw costs rising at an annual rate of 3.7% over the next five to 10 years, unchanged from September.
“Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds,” Joanne Hsu, director of the survey, said in a statement. “At this time, consumers do not expect meaningful improvement in these factors.’’
The absence of official data releases because of the government shutdown has reduced visibility into an economy characterized by resilient consumer spending. Still, private-sector economic indicators and surveys indicate the labor market remains soft, while manufacturing and services activity struggle for momentum.
About 63% of respondents said they expect unemployment to rise in the next year, down a touch from the prior month but nearly twice as high as last year. More than two-thirds see inflation exceeding their income growth in the coming year, the report showed.
Buying conditions for durable goods dropped to the lowest level since 2022 on concerns about tariffs.
The survey showed the current conditions gauge rose to 61 this month from 60.4 in September, while the expectations index eased to a five-month low.
A gauge of sentiment among Republicans rose to the highest level since Donald Trump's first presidential term. It also improved among political independents but fell among Democrats.
The survey was conducted Sep. 23 to Oct. 6.
Source : Bloomberg
