BlockBeats news, on October 9, U.S. consumer confidence further declined in early October, with consumers' assessment of the current economic situation falling to a historic low, as persistently high inflation continues to increase financial pressure on American households.
A preliminary survey released by the University of Michigan on Friday showed that the October consumer confidence index fell to 46.3, the lowest level since May. The current economic conditions index dropped sharply from 50.9 in September to 44.7, the lowest level on record. Meanwhile, the consumer expectations index rose from 46.3 to 47.3, marking its first increase since July.
As gasoline prices remain high, borrowing costs rise, and hiring activity slows, U.S. consumer confidence continues to deteriorate. The survey shows that consumers expect prices to rise by 4.7% over the next year, up from 4.6% in September. Long-term inflation expectations for the next 5 to 10 years have increased to an annual rate of 3.5%, slightly higher than the September level.
Joanne Hsu, Director of the Consumer Survey at the University of Michigan, stated in a statement that confidence among low-income consumers and those with smaller stock portfolios declined significantly this month.