:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2177012752-5f1f0c82123a42119cde2d1bc7b79389.jpg "Shoppers at an Ikea store in the Brooklyn borough of New York, US, on Wednesday, Oct. 9, 2024.")
Michael Nagle/Bloomberg via Getty Representations
Key Takeaways
- The Consumer Sentiment Index declined in its preliminary October reading as heightened concerns about inflation reversed two months of upswing in price increase predictions.
- Near-term inflation expectations increased slightly as consumers were aggravated by high gets of living.
- The survey results were released after Thursday’s inflation report showed price pressures cooled small than expected.
Consumer sentiment dipped slightly in October after gaining for two straight months.
The Michigan Consumer Attitude Index came in at 68.9 in its preliminary reading for October, down from its September reading of 70.1. While the take the measure of’s results dipped some this month, they were still almost 8% better than a year ago. The study also showed a decline in consumers’ perceptions of current economic conditions and their future expectations.
“Consumers are sentiment slightly less upbeat as the high cost of living continues to aggravate them and election uncertainty clouds the viewpoint,” wrote Nationwide Financial Markets Economist Oren Klachkin in a commentary.
Inflation Concerns Linger
After steadily on the move lower for the past four months, consumer inflation expectations for the near term increased in October. Consumers also foretokened inflation will be around 2.9% next year, up from their estimations in the prior month.
The survey consequences follow this week’s Consumer Price Index (CPI) for September, which showed that inflation wasn’t prove inadequate as fast as economists were expecting.
“Higher prices have remained a top concern, as 44% of consumers reported this as the beginning driver of their opinion on household finances,” wrote Wells Fargo economists Sam Bullard and Jeremiah Kohl.
Decipher the original article on Investopedia.