CONSUMER SENTIMENT FLAT AS PURCHASING POWER CONCERNS DOMINATE

What happened: The University of Michigan Consumer Sentiment Index fell to 48.0 in October 2026 from 48.1 in September, with the Current Index down and the Expectations Index up. Key numbers: Sentiment 48.0 vs 48.1 in September and 53.6 last October. Current Index 46.7 vs 50.9. Expectations Index 48.8 vs 46.3. Buying conditions for durables fell 18%. Why it matters: Economist Joanne Hsu said purchasing power dominates consumer views, with sentiment 10% below a year ago and 15% below February, and rising rate expectations suggest further deterioration in buying conditions.

The University of Michigan Consumer Sentiment Index fell to 48.0 in October 2026 from 48.1 in September, with the Current Index down and the Expectations Index up.

Economist Joanne Hsu said purchasing power dominates consumer views, with sentiment 10% below a year ago and 15% below February, and rising rate expectations suggest further deterioration in buying conditions.