US consumer confidence slips in October due to inflation worries, University of Michigan says

Consumer confidence in the U.S. soured at the start of October amid concerns about inflation, the results of a closely followed survey showed.

On longer time frames nonetheless confidence appeared to be holding up better.

The University of Michigan's consumer confidence index slipped from a reading of 68.1 in September to 63.0 for early October.

Economists had penciled in a print of 67.5.

Assessments of personal finances fell by 15%, mainly due to consumers fretting more about inflation, while expectations for business conditions one year ahead plunged by 19%, said Joanne Hsu, the survey's director.

"However, long-run expected business conditions are little changed, suggesting that consumers believe the current worsening in economic conditions will not persist," she added.

"Nearly all demographic groups posted setbacks in sentiment, reflecting the continued weight of high prices."

Inflation expectations one year ahead jumped from 3.2% in September to 3.8%.

For over the long-run, inflation expectations moved up from 2.8% to 3.0%, keeping them in the same 2.9-3.1% range observed in 25 of the past 27 months.

In the two years prior to the pandemic, long-run inflation expectations had moved in a range of 2.2-2.6%.

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