University of Michigan preliminary October consumer sentiment index fell to
46.3, the lowest since May, the survey showed on Friday. The current economic
conditions index dropped to 44.7 from 50.9 in September, a record low. The
expectations index rose to 47.3 from 46.3, its first uptick since July. One-year
inflation expectations rose to 4.7% (from 4.6%); five- to ten-year expectations
edged up to 3.5%, slightly above September. The survey cited high gasoline
prices, rising borrowing costs and slowing hiring as pressures on household
finances; survey director Joanne Hsu said the confidence decline was
concentrated among low-income households and those with small equity portfolios.
