The University of Michigan's Consumer Confidence Index fell to 68.9 in October, marking the first decline in three months and falling short of the revised September value of 70.1. This result was weaker than anticipated, as economists had forecasted a modest rise to 70.9.
Despite the dip in consumer confidence this month, Joanne Hsu, director of the survey, noted that consumer sentiment remains resilient. She highlighted that the current confidence index is 8% higher than it was a year ago and nearly 40% above the low point in June 2022. Inflation expectations have eased significantly since then, yet consumers are still frustrated by persistent high prices.
Hsu pointed out that while news about conflicts in the Middle East and Ukraine is widespread, only a small portion of consumers associate these issues with the U.S. economy. Concern over these conflicts has increased slightly but remains low, with less than 5% of consumers mentioning them spontaneously. As elections approach, some consumers appear hesitant to judge the long-term economic trajectory.
