Key facts
- Consumer sentiment index fell to 48.0 in October from 48.1 in September.
- Inflation expectations for the next year rose to 4.7% from 4.6%.
- Five-year inflation expectations increased to 3.5% from 3.4%.
US consumer sentiment edged down to near a record low in October, with rising prices linked to the Middle East conflict souring household views of the economy ahead of midterm elections. The University of Michigan's Consumer Sentiment Index fell to 48.0 this month from a final reading of 48.1 in September, according to a survey released on Friday. Economists polled by Reuters had forecast the index at 46.3. The October reading is the second-lowest on record, following the all-time low of 44.8 set in May. "Purchasing power continues to dominate consumer views of the economy," said Joanne Hsu, the director of the Surveys of Consumers. "Sentiment is now 10% below a year ago and 15% less than February, just prior to the Iran conflict."