University of Michigan survey shows consumers feel a little better about their finances
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Surveys of Consumers Director Joanne Hsu: Consumer sentiment moved sideways this month.
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At 55 index points, sentiment is virtually unchanged from September.
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Weakness in expectations for future personal finances and durable-goods conditions offset gains in current finances and business outlooks.
The University of Michigans preliminary consumer sentiment index for October held nearly flat at 55.0, a modest dip from Septembers final 55.1, signaling little change in how Americans view their financial prospects and the broader economy.
Surveys of Consumers Director Joanne Hsu emphasized said there there were modest improvements in assessments of current personal finances and year-ahead business conditions, but they were counterbalanced by declines in expectations for future personal finances and current buying conditions for durable goods.
Overall, she judged that consumers saw very few changes in the outlook for the economy compared to last month.
Key subindexes and inflation sentiment
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The Current Economic Conditions subindex rose to 61.0 from 60.4 in September, pointing to a slight improvement in how households feel about their immediate financial situation.
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The Expectations subindex slipped to 51.2 from 51.7, reflecting softer sentiment about what lies ahead.
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Year-ahead inflation expectations eased slightly to 4.6% (from 4.7% last month), while long-run expectations held steady at 3.7%.
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Compared to a year ago, both inflation expectations and the overall index remain well below their longer-term peaks earlier this year.
Drivers and headwinds
Consumers continue to wrestle with pocketbook pressures, such as persistent high prices and anxiety over job stability. Hsu noted that many households do not currently anticipate meaningful improvement in these areas.
Interviews conducted during the survey period found little indication that the ongoing federal government shutdown has significantly altered views of the economy. Still, the weak overall reading comes at a challenging time: with other economic benchmarks such as labor market data delayed or in flux, the Michigan survey is among the few timely gauges of public confidence available.
Analysts warn that the flat reading underscores a fragile undercurrent in consumer behavior. With inflation outlooks still elevated and wage growth under pressure, households may rein in discretionary spending should conditions worsen.
Posted: 2025-10-13 11:37:19















