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We consumer sentiment held steady in October, although Americans remained concerned about the labor market and inflation as the government shutdown began.
The University of Michigan’s preliminary consumer sentiment survey for October was little changed from the previous month, coming in at 55 as economists polled by LSEG had anticipated a more significant decline in the index for September to 54.2 after a 55.1 reading.
The survey of Michigan consumers noted that “pocketbook issues such as higher prices and weak job prospects remain at the forefront of consumers’ minds,” adding that interviews with respondents found little evidence that the shutdown “has changed consumers’ views about the economy so far.”
Consumer scale in survey inflation expectations It fell from 4.7% in September the following year to a still-high 4.6% this month. Consumers’ expectations for inflation over the next five years remained unchanged at 3.7%.
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Preliminary data for October showed a change in consumer sentiment compared to last month’s readings. (Stephanie Keith/Bloomberg via Getty Images/Getty Images)
consumers were pessimistic Their views regarding future personal finances and current purchasing conditions for long-life manufactured goods were unfavorable.
Before the government data blackout labor market had softened, with job growth almost stalling in the three months leading up to August.
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The survey found that consumers expect inflation to remain high throughout the year. (Justin Sullivan/Getty Images/Getty Images)
The survey was conducted between 22 September and 6 October. Government funding ended on 30 September. Sentiment had declined during previous shutdowns, and economists expect consumer sentiment data to be downgraded when final data is published later this month.
“The final Michigan survey for October will probably show a more significant decline unless the shutdown ends soon,” said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics.
The Fed’s preferred inflation gauge shows consumer prices remained high in August.
The government shutdown began on Oct. 1 and lawmakers have yet to agree on a plan to end the funding shortfall for agencies. (Kent Nishimura/Bloomberg/Getty Images/Getty Images)
Despite expectations of higher inflation, economists say federal Reserve Another cut in interest rates will continue in the meeting on 28-29 October.
Fed Easing policy restarted In September, it cut its benchmark overnight interest rate by 25 basis points to a range of 4.00%-4.25% amid signs of weakness in the labor market.
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Reuters contributed to this report.
