Final October US Consumer Sentiment Hits 48.0 as Long-Run Inflation Expectations Rise

The University of Michigan's final Consumer Sentiment Index for October came in at 48.0, exceeding consensus forecasts of 46.3 despite dipping from 48.1 previously. Current economic conditions fell to 46.7 from 50.9, pressured by an 18% decline in durable goods buying conditions linked to borrowing costs. Meanwhile, consumer expectations rose to between 48.4 and 48.8 from 46.3. Long-run inflation expectations reached 3.5%, their highest since May, up from 3.4% in September, while one-year expectations stood elevated at 4.7%, raising potential headwinds for equity markets and complicating monetary policy.