US Consumer Sentiment Index Declined in October

The consumer sentiment index published monthly by the University of Michigan in the United States decreased by 1.8 points in October to 46.3, falling behind market expectations.

October Data Falls Short of Expectations

The University of Michigan announced the preliminary consumer sentiment index data for October, which measures consumer trends. Accordingly, the index decreased by 1.8 points compared to the previous month, dropping to 46.3 and seeing its lowest level since May.

Market Expectations and September Comparison

General expectations in the markets were for the consumer sentiment index to come in at 47.5 during this period. The consumer sentiment index had been recorded at 48.1 in the previous month of September.

Economic Conditions and Expectations Index

The current economic conditions index, in which American consumers evaluate their current economic situations, declined by 6.2 points on a monthly basis in October to 44.7. Meanwhile, the consumer expectations index, reflecting future projections, increased by 1 point to 47.3.

Upward Trend in Inflation Expectations

Consumers' short-term inflation expectation rose from 4.6 percent to 4.7 percent in October. The long-term inflation expectation also increased from 3.4 percent to 3.5 percent.

With these results, both short- and long-term inflation expectations increased for the second consecutive month, reaching their highest levels since May.