US consumer sentiment stays near record lows as inflation expectations hit their highest since May
The University of Michigan's final October sentiment index was 48.0, with year-ahead inflation expectations rising to 4.7%, days before the Federal Reserve meets.
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The University of Michigan's final October index of consumer sentiment came in at 48.0, almost unchanged from September's 48.1 and 10.4% below October 2025. The current-conditions index fell 8.3% to 46.7, driven entirely by worse buying conditions for durable goods amid higher interest rates and affordability worries, while the expectations index rose 5.4% to 48.8.Sources:1University of Michigan Surveys of Consumers: Surveys of Consumers: final results for October 2026, University of Michigan Surveys of Consumers, 23 October 2026 (source, opens in a new tab)
Year-ahead inflation expectations rose to 4.7% from 4.6%, and long-run expectations rose to 3.5% from 3.4%, both the highest since May, the survey said. Survey director Joanne Hsu said: "Purchasing power continues to dominate consumer views of the economy."Sources:1University of Michigan Surveys of Consumers: Surveys of Consumers: final results for October 2026, University of Michigan Surveys of Consumers, 23 October 2026 (source, opens in a new tab)
The final reading beat the 46.3 that economists had expected, InvestingLive reported, noting that the gauge remains near all-time lows. The data came as Brent crude settled at a six-month high of $116.72 a barrel on fears of escalation in the Middle East.Sources:2InvestingLive: UMich final October consumer sentiment 48.0 vs 46.3 expected, InvestingLive, 23 October 2026 (source, opens in a new tab)3Yahoo Finance: Stock market today: Dow sinks 600 points, S&P 500, Nasdaq drop to cap a volatile week, oil prices rise, Yahoo Finance, 23 October 2026 (source, opens in a new tab)
The Federal Reserve meets on 28 October. Yahoo Finance reported that traders had cut bets on an October rate hike to about 5% after Thursday's tech sell-off pushed Treasury yields down sharply.Sources:3Yahoo Finance: Stock market today: Dow sinks 600 points, S&P 500, Nasdaq drop to cap a volatile week, oil prices rise, Yahoo Finance, 23 October 2026 (source, opens in a new tab)
Where it happened
Who is involved
- University of MichiganPublished the final October consumer sentiment surveyUS public university that runs the Surveys of Consumers
- Joanne HsuSaid purchasing power dominates consumer viewsDirector of the University of Michigan consumer surveys
- Federal ReserveMeets on 28 October; traders priced about a 5% chance of a hikeCentral bank of the United States
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