Odaily Planet Daily report: U.S. consumer confidence declined at the beginning of October, as inflation continued to pressure households, with perceptions of current economic conditions falling to a historic low. According to a survey released by the University of Michigan on Friday, the preliminary consumer confidence index dropped to 46.3, the lowest since May and below the economists’ median forecast of 47.6. The current conditions index fell from 50.9 last month to 44.7, hitting a record low. The expectations index rose from 46.3 to 47.3, marking its first increase since July.
Consumers expect prices to rise by 4.7% over the next year, slightly higher than last month’s 4.6%. They anticipate an average annual price increase of 3.5% over the next five to ten years, also slightly higher than September’s expectations. Joanne Hsu, who oversees the survey, stated in a statement that confidence among low-income consumers and those with smaller stock portfolios declined significantly this month. The rise in confidence among Democratic and Republican supporters was offset by a decline among independents. Hsu said, “Regardless of political affiliation, consumers across all ideological groups believe that economic prospects have weakened compared to before the Iran conflict erupted earlier this year.”