From BigGo Finance · BigGo Finance · · 1m 10s
US Consumer Sentiment Drops to 48.0 in October
US consumer sentiment falls to 48.0 in October as Iran conflict-driven inflation squeezes households.
In brief
US consumer sentiment falls to 48.0 in October as Iran conflict-driven inflation squeezes households. US consumer confidence dropped to 48.0 in October, the second-lowest since the survey began, as Iran conflict-related inflation pressures rise ahead of midterms. Originally reported by BigGo Finance.
October Consumer Confidence Index
The University of Michigan's October Consumer Confidence Index (final reading) came in at 48.0, edging down slightly from 48.1 in September.
Second-Lowest Since Survey Began
It is the second-lowest level since the survey began, after May's record low of 44.8, and beat the market forecast of 46.3.
Inflation Expectations Rise
One-year inflation expectations rose to 4.7% and five-year expectations to 3.5%.
Independents' Index Deteriorates
The index for independents deteriorated to 42.4, while one-year inflation expectations rose to 4.7% and five-year expectations to 3.5%.
Market Reactions
The S&P 500 fell 0.16%, and the 10-year Treasury yield climbed to 4.99%.
Impact on Midterms
With U.S. midterm elections, in which the cost of living is a central issue, fast approaching, the data paint a picture of price increases tied to the Middle East conflict dragging down household sentiment.
The short version
US consumer confidence dropped to 48.0 in October, the second-lowest since the survey began, as Iran conflict-related inflation pressures rise ahead of midterms.
