U.S. consumer sentiment barely shifted in October, while the University of Michigan’s survey showed weaker views of current conditions and major purchases amid persistent household price concerns.
The final index was 48.0, down 0.1 point from September’s 48.1. That left it 10.4% below October 2025, but 3.2 points above May’s 44.8. The university’s May release said that reading sat marginally below the previous low, recorded in June 2022.
The two components moved in opposite directions: the Current Economic Conditions Index dropped to 46.7 from 50.9, while the Index of Consumer Expectations advanced to 48.8 from 46.3. The university calculates that a one-month move must reach 4.8 points to meet its 95% significance test, making October’s 0.1-point decline small by that measure.
Consumers gave a more negative assessment of buying conditions: the university’s durable-goods measure fell 18%, which it linked to affordability concerns and higher interest rates. For housing, 85% said October was a bad time to buy; the share pointing to high interest rates reached 62%, compared with 47% in September.
When no prompt was given, 56% identified high prices as a strain on their finances, up from 45% in January. Gasoline costs surfaced on their own in more than two-fifths of responses. The university’s breakdown showed greater price pressure among lower-wealth households and respondents with little or no stock-market exposure. Those with the largest stock portfolios described strain similar to February’s.
University of Michigan data showed a split by party: sentiment weakened among independents, while Democratic and Republican respondents registered gains.
Consumers’ inflation outlook also edged up. The measure for the coming year rose to 4.7% from 4.6% in September, and the long-term measure climbed to 3.5% from 3.4%; the university said both were at their highest levels since May. The Federal Open Market Committee (FOMC) is scheduled to meet Tuesday and Wednesday, Oct. 27-28. The university’s preliminary November sentiment reading is due Nov. 6 at 10 a.m. ET, after the Nov. 3 federal general election.
