US consumer sentiment hits near-record low ahead of midterms

Summarised from 2 outlets · Updated 23 Oct, 20:32 · Archive

US consumer sentiment fell to a near-record low in October, driven by inflation and higher prices.

Consumer sentiment in the United States hit a near-record low in October as cost-of-living pressures mounted ahead of consequential midterm elections. The University of Michigan's Consumer Sentiment Index dropped to 48.0 in October from 48.1 in September, marking the second-lowest reading on record. Only the May reading of 44.8 was lower. Economists surveyed by Reuters had predicted a figure of 46.3.

Inflation and higher prices, partly attributed to tensions between the US and Iran, have dominated consumers' economic concerns. Joanne Hsu, director of the Surveys of Consumers, said: 'Purchasing power continues to dominate consumer views of the economy. Sentiment is now 10 per cent below a year ago and 15 per cent less than February, just prior to the Iran conflict.'

The decline was driven particularly by self-identified independents, whose sentiment fell to 42.4 points, approaching the all-time low of 40.6 reached in May. Since January, the proportion of independents pointing to inflation pressures hurting their finances rose by 27 per cent. Republicans citing inflation concerns rose by 52 per cent, and Democrats by 15 per cent.

US consumer sentiment hits near-record low ahead of midterms — Image: Independent World

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US consumer sentiment nears lowest point since index began ahead of midterm electionsOctober's reading marked the second-lowest on record after the all-time low of 44.8 set in MayIndependent World · 23 Oct, 20:17
US consumer sentiment hits a near-record low before midterm electionsIndependent voters’ economic anxieties highlight political implications of plummeting US consumer sentiment.Al Jazeera · 23 Oct, 18:26

In this story: United States · University of Michigan · Iran · Joanne Hsu

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