American consumer confidence declined in October amid concerns over high prices, according to The University of Michigan’s Index of Consumer Sentiment.
Consumer sentiment in the U.S. went down by 1.2 index points to 68.9 in October after two months of gains, according to the survey. Joanne Hsu, surveys of consumers director, cited high prices for consumer’s dissatisfaction.
Some consumers may be “withholding judgement” about the trajectory of the U.S. economy due to the upcoming presidential election in November, Hsu wrote. The consumer sentiment for October is 8% stronger than it was last year, according to the survey results.
Inflation in the U.S. dipped slightly in September following concerns about a hotter-than-expected economy. The consumer price index, which measures the price of everyday goods, increased 2.4% annually in September, compared to 2.5% in August, according to a Thursday release from the Bureau of Labor Statistics.
September’s inflation rate was under the 2.3% that was expected.
Job growth in September also exceeded expectations, with unemployment rates dropping to 4.1% and 254,000 nonfarm payroll jobs being added.
Many voters view the economy as one of the most important issues in the upcoming presidential election. Fifty-four percent of registered voters favor former president Donald Trump over Vice President Kamala Harris in regard to who they trust to handle the economy, according to a Gallup poll released Wednesday.
Inflation, which reached a peak of 9.1% under the Biden administration in June 2022, has weakened consumer spending and caused many companies to struggle to stay afloat. Housing costs also soared in July, which accounted for almost 90% of total inflation.
Uncertainty among small business owners reached an all-time high in September, and some small businesses have been forced to raise prices.
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