NEW YORK, Oct. 23 (Xinhua) -- The U.S. consumer sentiment kept falling in October for the third month in a row, as purchasing power continues to dominate consumer views of the economy.
According to a final reading released by the University of Michigan (UM) Surveys of Consumers, the Index of Consumer Sentiment weakened to 48 in the October 2026 survey, 0.2 percent below September, and 10.4 percent below a year ago. The sentiment is also 15 percent less than in February, just prior to the Iran conflict.
The Current Economic Conditions Index fell to 46.7, down from 50.9 in September and below last October's 58.6. The Index of Consumer Expectations inched up slightly to 48.8 from 46.3 in September, but was still below last October's 50.3.
The decline in the Current Economic Conditions subindex was driven entirely by buying conditions for durables, which plunged 18 percent on the basis of higher interest rates and rising concerns about the affordability of such purchases. About 69 percent of consumers expect interest rates to rise in the year ahead, the highest since April 2023, suggesting that consumers anticipate further deterioration in buying conditions.
Frustration over high prices eroding consumers' living standards continues to mount, said UM economist Joanne Hsu, director of the surveys.
Year-ahead inflation expectations in October ticked up from 4.6 percent in September to 4.7 percent. Long-run inflation expectations also stepped up from 3.4 percent in September to 3.5 percent. Inflation expectations over both time horizons increased for the second straight month to their highest readings since May. ■