October 18, 2023
According to a study, households’ expectations for increased inflation over the coming year caused a dramatic decline in consumer mood in the US in October.
The preliminary score for the overall index of consumer sentiment from the University of Michigan was 63.0 this month compared to 68.1 in September. Reuters polled economists, who predicted an initial reading of 67.2.
Joanne Hsu, the director of the University of Michigan’s Surveys of Consumers, stated in a statement that “nearly all demographic groups posted setbacks in sentiment, reflecting the continued weight of high prices.”
The survey’s reading of one-year inflation expectations increased to 3.8% this month from 3.2% in September.
The five-year inflation outlook rose to 3.0% from 2.8% in the prior month, staying within the narrow 2.9-3.1% range for 25 of the last 27 months.
Source: Reuters
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