U.S. Consumer Sentiment Deteriorates More Than Previously Estimated In October

(RTTNews) - Revised data released by the University of Michigan on Friday showed consumer sentiment in the U.S. deteriorated by more than initially estimated in the month of October.

The University of Michigan said its consumer sentiment index was downwardly revised to 53.6 from the preliminary reading of 55.0.

Economists had expected the consumer sentiment index to be unrevised from the preliminary reading, which was down slightly from 55.1 in September.

The unexpected downward revision to the headline index partly reflected a downturn by consumers' assessment of current economic conditions.

The report said the current economic conditions index fell to 58.6 in October from 60.4 in September, while the preliminary data showed the index crept up to 61.0.

The index of consumer expectations also decreased to 50.3 In October from 51.7 in September compared to the preliminary estimate of a dip to 51.2.

"Overall, consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers' minds," said Surveys of Consumers Director Joanne Hsu.

The University of Michigan said year-ahead inflation expectations ebbed to 4.6 percent in October from 4.7 percent in September, unchanged from the preliminary estimate.

Meanwhile, long-run inflation expectations rose to 3.9 percent in October from 3.7 percent in September. The preliminary estimate showed long-run inflation expectations held steady.

"This month's increase in long-run inflation expectations was driven primarily by independents and Republicans," Hsu said.

Hsu also noted the survey found little evidence this month that consumers connect the federal government shutdown to the economy.

"Only about 2% spontaneously referenced the shutdown during this month's interviews, compared with the 10% of consumers who did so in January 2019 during that 35-day shutdown," she said.