US consumer sentiment index falls to 46.3 in early October

US consumer sentiment deteriorated further in early October, with the University of Michigan's Surveys of Consumers reporting its index dropped to 46.3 this month from a final reading of 48.1 in September. This was below the 47.8 forecast by economists polled by Reuters.

"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," said Joanne Hsu, the director of the Surveys of Consumers. She added that sentiment for lower-income consumers and those with smaller stock portfolios dropped steeply this month, as these groups have fewer resources to cope with rising prices.

The survey also indicated an uptick in inflation expectations. Consumers' outlook for inflation over the next year nudged up to 4.7% from 4.6% in September, a surge from 3.4% in February. Expectations for inflation over the next five years rose to 3.5% from 3.4% in September.