U.S. consumer sentiment slipped in October to a five-month low as rising prices
and higher interest rates weighed, the University of Michigan said on Friday.
The final sentiment index fell to 48.0 from 48.1 in September, remaining above
the preliminary reading and economists’ expectations. One-year inflation
expectations rose to 4.7% (from 4.6%); five- to ten-year expectations increased
to 3.5% — both the highest since May. Survey director Joanne Hsu said short- and
long-term inflation expectations have risen in recent months after five years of
inflation running above target, underscoring the risk that elevated expectations
could become entrenched, and that consumers across the political spectrum view
inflation as a larger near-term economic risk than unemployment.
