Preliminary October results show greater financial strain among lower-income households.
Americans’ views of the economy weakened in early October, with lower-income households reporting particular pressure from rising living costs.
The University of Michigan’s preliminary Consumer Sentiment Index fell to 46.3 from 48.1 in September. Its measure of current economic conditions declined to 44.7 from 50.9.
Expectations for the future improved slightly, but consumers’ assessments of buying conditions for major purchases deteriorated amid high prices and borrowing costs.
Survey director Joanne Hsu said sentiment fell sharply among lower-income consumers and people with smaller stock portfolios, groups with fewer resources to absorb price increases.
The university found frustration across the political spectrum, even though changes in sentiment differed by party affiliation.
Consumers’ expectations for inflation over the coming year increased to 4.7% from 4.6%. Longer-term expectations edged up to 3.5% from 3.4%.
Those figures describe what survey respondents expect, rather than a forecast guaranteeing future price increases.
The results are preliminary. The university plans to release its final October figures on October 23.
