A report released by the University of Michigan on Friday showed an unexpected deterioration by U.S. consumer sentiment in the month of October.
The University of Michigan said its consumer sentiment index fell to 68.9 in October after climbing to 70.1 in September. Economists had expected the index to inch up to 70.8.
The unexpected decrease by consumer sentiment may have reflected lingering inflation concerns, as year-ahead inflation expectations rose to 2.9 percent in October from 2.7 percent in September.
On the other hand, the report said long-run inflation expectations edged down to 3.0 percent in October from 3.1 percent in September.
Sentiment is currently 8% stronger than a year ago and almost 40% above the trough reached in June 2022, said Surveys of Consumers Director Joanne Hsu.
She added, While inflation expectations have eased substantially since then, consumers continue to express frustration over high prices.
The report also said the current economic conditions index dipped to 62.7 in October from 63.3 in September, while the index of consumer expectations fell to 72.9 in October from 74.4 in September.