U.S. October consumer sentiment lowest in 5 months... Current economic evaluation is the worst ever

The economic sentiment of American consumers has deteriorated to the lowest level in five months amid high inflation and the burden of living costs.

The University of Michigan announced on the 9th (local time) that the provisional consumer sentiment index for October was 46.3, down 1.8 points from the previous month's confirmed value (48.1).

This is the lowest level since last May and also fell below expert expectations (47.6) compiled by Bloomberg.

The current economic conditions index, which reflects the current economic situation, plummeted from 50.9 to 44.7 the previous month, hitting an all-time low.

However, the consumer expectation index, which indicates future prospects, rose from 46.3 the previous month to 47.3. This is the first increase since last July.

It is interpreted that consumer sentiment has weakened due to gasoline prices remaining high in the aftermath of the US-Iran war, rising borrowing costs, and a slowdown in new hiring.

In recent months, the inflation rate has exceeded the wage growth rate, increasing the burden of living expenses on households.

Joan Shu, director of consumer research at the University of Michigan, said, "Despite differences in political leanings, consumers agree that the economic outlook has worsened compared to the beginning of this year before the U.S.-Iran war."

At the same time, he explained, “In particular, the sentiment of low-income people and consumers with little stock investment assets deteriorated significantly this month,” adding, “These are a class that relatively lacks the financial capacity to withstand rising prices.”