Business · Economy · 2 days ago
US consumer confidence falls further in October as price concerns grow
US consumer confidence fell in early October, according to a survey by the University of Michigan.
Its confidence index dropped to 46.3 from 48.1 in September, below the 47.8 economists had expected.
The survey said higher prices linked to conflict in the Middle East were weighing on households’ views of the economy.
People with lower incomes and smaller stock portfolios saw confidence fall sharply, and have fewer resources to cope with rising costs.
Expectations for inflation over the next year rose to 4.7% from 4.6%, while expectations for the next five years increased to 3.5% from 3.4%.
The survey gives a snapshot of how consumers view the economy and prices; it did not specify what happens next.
US consumer confidence fell to 46.3 in early October from 48.1 in September, a University of Michigan survey found.
The reading was below the 47.8 expected by economists surveyed by Reuters.
The survey said higher prices linked to the Middle East conflict were weakening households’ views of the economy.
Inflation expectations for the coming year rose to 4.7% from 4.6% in September.
- Who
- US consumers, as measured by the University of Michigan’s consumer survey.
- What
- Consumer confidence fell to 46.3 in October from 48.1 in September.
- When
- Early October 2026; the results were published on October 9.
- Where
- United States.
- Why
- Higher prices linked to the conflict in the Middle East weakened households’ confidence in the economy.
This story does not have two clearly opposing sides.
Frustration over the cost of living continues to grow, as consumers across the political spectrum believe the economy’s course has been weak since the beginning of the year.
Overall, confidence among lower-income consumers and those with smaller stock portfolios fell considerably this month, two groups with fewer resources to cope with rising prices.
One-year inflation expectations were 3.4% before the US-Israeli war on Iran began.
Consumer confidence stood at 48.1, and one-year inflation expectations were 4.6%.
Consumer confidence fell to 46.3, while one-year inflation expectations rose to 4.7%.
The survey results were published.
- October consumer confidence
- 46.3
- September consumer confidence
- 48.1
- Economists’ forecast
- 47.8
- One-year inflation expectations
- 4.7%, up from 4.6% in September
- Five-year inflation expectations
- 3.5%, up from 3.4% in September
Sources
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