Final October US Consumer Sentiment Hits 48.0 as Long-Term Inflation Expectations Climb

The University of Michigan's final October consumer sentiment index printed at 48.0, beating expectations of 46.3 but marking the second-lowest level since 1952. The current economic conditions gauge deteriorated to 46.7 from 50.9, weighed down by an 18% decline in durable goods buying conditions due to borrowing costs and affordability concerns. In contrast, the consumer expectations index advanced to between 48.4 and 48.8, supported by improving business outlooks. Concurrently, year-ahead inflation expectations moved up to 4.7%, while long-run inflation expectations reached 3.5%, matching their highest marks since May.