US consumer sentiment falls in October on frustration over high prices

WASHINGTON – Americans’ outlook on the economy soured somewhat this month after two months of small gains, according to the University of Michigan’s consumer sentiment index released Friday.

The index fell to 68.9 in October from 70.1 in September, which had been its highest reading since May. “Consumers continue to express frustration with high prices,” said Joanne Hsu, director of consumer surveys at the University of Michigan.

Many consumers appear to be reserving judgment on the economy while they wait for the presidential campaign to end, Hsu added.

The survey bottomed out in June 2022, when inflation peaked at 9.1%, and has since risen to around 40%, although it remains significantly below pre-pandemic levels . In October, Republicans reported a much sharper drop in sentiment than Democrats.