# US consumer sentiment stays near record lows as inflation expectations hit their highest since May

Business & Markets · 23 October 2026 · Ann Arbor, United States
URL: https://connectthedots.news/event/2026-10-23-us-consumer-sentiment-stays-near-record-lows-as-inflation

> 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.

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. [1]

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." [1]

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. [2][3]

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. [3]

## Who was involved

- [University of Michigan](https://connectthedots.news/org/university-of-michigan): Published the final October consumer sentiment survey [1]
- [Joanne Hsu](https://connectthedots.news/person/joanne-hsu): Said purchasing power dominates consumer views [1]
- [Federal Reserve](https://connectthedots.news/org/federal-reserve): Meets on 28 October; traders priced about a 5% chance of a hike [3]

## Sources

1. University of Michigan Surveys of Consumers, "Surveys of Consumers: final results for October 2026", 23 October 2026: https://www.sca.isr.umich.edu/
2. InvestingLive, "UMich final October consumer sentiment 48.0 vs 46.3 expected", 23 October 2026: https://investinglive.com/news/umich-final-october-final-consumer-sentiment-48-0-vs-46-3-expected/
3. Yahoo Finance, "Stock market today: Dow sinks 600 points, S&P 500, Nasdaq drop to cap a volatile week, oil prices rise", 23 October 2026: https://finance.yahoo.com/markets/live/stock-market-today-friday-october-23-dow-sp-500-nasdaq-tesla-meta-093000521.html