WS News
09 Oct 2026, 15:00
U.S. Consumer Sentiment Weakens in October as Inflation Expectations Stay Elevated
The University of Michigan’s preliminary Consumer Sentiment Index fell to 46.3 in October, below the 47.5 consensus estimate and down from 48.1 previously.
Consumer expectations were somewhat more resilient, rising to 47.3 from 46.3 and beating the 45.9 forecast. That suggests households became slightly less pessimistic about the outlook even as overall sentiment deteriorated.
One-year inflation expectations edged up to 4.7% from 4.6%, although the reading came in slightly below the 4.8% consensus estimate.
The report gives a mixed signal for markets. Softer headline sentiment points to continued caution among U.S. consumers, while the improvement in expectations offers some support to the growth outlook. However, inflation expectations remain elevated, which could keep investors sensitive to additional price-pressure data and complicate expectations for faster monetary easing.
The University of Michigan’s preliminary Consumer Sentiment Index fell to 46.3 in October, below the 47.5 consensus estimate and down from 48.1 previously.
Consumer expectations were somewhat more resilient, rising to 47.3 from 46.3 and beating the 45.9 forecast. That suggests households became slightly less pessimistic about the outlook even as overall sentiment deteriorated.
One-year inflation expectations edged up to 4.7% from 4.6%, although the reading came in slightly below the 4.8% consensus estimate.
The report gives a mixed signal for markets. Softer headline sentiment points to continued caution among U.S. consumers, while the improvement in expectations offers some support to the growth outlook. However, inflation expectations remain elevated, which could keep investors sensitive to additional price-pressure data and complicate expectations for faster monetary easing.
