Consumer sentiment shows cost-of-living frustration
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One of the final snapshots of how Americans feel about the economy before voters head to the polls in the midterm elections shows a nation still deeply frustrated by the cost of living.
By the numbers: The University of Michigan's consumer sentiment index registered 48 in October, virtually unchanged from September's 48.1 and revised higher from a preliminary reading of 46.3.
- That initial estimate was the second-lowest in the survey's history, behind the all-time low hit in May.
- Even after the upward revision, sentiment remains 10% below its level this time last year.
Zoom in: Beneath the flat headline reading, consumers grew more pessimistic about current economic conditions, with that index falling more than 4 points to 46.7.
- Buying conditions for durable goods plunged 18% amid high prices and rising borrowing costs — accounting for the entire decline in consumers' assessment of current economic conditions.
- "Purchasing power continues to dominate consumer views of the economy," Joanne Hsu, director of the survey, said in the release.
- But consumers' outlook for the future improved, with the expectations sub-index rising 2.5 points to 48.8.
The intrigue: Separate data released alongside the index showed that the share of Republicans citing high prices as a drag on their finances has surged roughly 50 percentage points since January, a much larger increase than among Democrats or independents.
- The increase was also especially pronounced among consumers with little or no stock wealth.
The bottom line: Americans don't feel much worse about the economy than they did last month. But their already bleak outlook isn't improving, either.
- The Conference Board releases its October consumer confidence survey Tuesday — one week before Election Day.
