A shopper at a grocery store in Dayton, Ohio, US, on Tuesday, Oct. 21, 2025. The Bureau of Labor Statistics said it will publish the September consumer price index (CPI) figures on Oct. 24, marking a rare exception to release data during the government shutdown. Photographer: Kyle Grillot/Bloomberg
(Bloomberg) — US consumer sentiment fell in October to a five-month low, as worries persisted about stubbornly high prices and the impact on their finances.
The final October sentiment index fell to 53.6 from 55.1 in September, a deterioration from the preliminary reading, according to the University of Michigan. A measure of current conditions dropped to the lowest since August 2022.
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Consumers expect prices to rise 3.9% over the next five to 10 years, more than the 3.7% they anticipated a month ago, the data released Friday showed. Respondents expect prices to rise at an annual rate of 4.6% over the next year, down slightly from 4.7% a month earlier.
“Overall, consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers’ minds,” Joanne Hsu, director of the survey, said in a statement. “There was little evidence this month that consumers connect the federal government shutdown to the economy.”
Figures released earlier Friday showed the consumer price index rose in September by less than projected. However, household expenses were mixed. While grocery inflation slowed, prices for key items like cereals and nonalcoholic beverages picked up. Gasoline costs jumped, while car insurance prices fell.
WATCH: US consumer sentiment fell in October to a five-month low as people worry about stubbornly high prices and how they impact family budgets.Source: Bloomberg
Excluding the CPI report, the absence of official data releases because of the government shutdown has reduced visibility into an economy that had been showing resilient consumer spending. Still, private-sector economic indicators and surveys point to slower job growth but also limited layoffs.
The Michigan survey showed consumers are “frustrated by the persistence of high prices,” with nearly half noting that their personal finances have been eroded as a result. Expectations about the job market were stable this month, though they remain at an unfavorable level.
The survey of sentiment showed the current conditions gauge dropped to a multi-year low of 58.6, and a measure of buying conditions for big-ticket items also slid to the lowest since 2022.
The University’s gauge of consumer expectations slid to 50.3, a five-month low.
The survey was conducted Sept. 23 to Oct. 20.
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