The following is an excerpt from a Yahoo Finance report.
Consumer sentiment fell in October as frustration over the higher cost of living weighed on Americans’ views of the economy, according to a survey from the University of Michigan.
Overall consumer sentiment fell to 46.3 in October, down 1.8 points from September’s reading of 48.1. The preliminary reading was slightly below Wall Street’s expectation of 47.3.
“Frustration over cost-of-living continues to mount, as consumers across the political spectrum believe that the trajectory of the economy has weakened since the beginning of the year,” Joanne Hsu, the survey’s director, said in the release.
With 25 days until the midterm elections, Hsu added that sentiment among Democrats and Republicans improved, but that was offset by a decline in independents.
Consumers face a growing number of macroeconomic concerns: Higher inflation; worries over the U.S. national debt, which is now above $40 trillion; and a rise in the benchmark 10-year US Treasury yield (^TNX), which risks jumping to 6% for the first time since 2000. The 10-year yield is often a gauge for global borrowing costs, and its recent increase has dampened Americans’ outlook for buying conditions.
This week, the average 30-year fixed mortgage rate increased to 7.4%, a three-year high, according to Freddie Mac survey data.
Sentiment among groups who have fewer resources to weather price increases, such as lower-income consumers and those with smaller stock portfolios, declined this month.
