U.S. consumer confidence declined in early October, with inflation continuing to put pressure on households, and people's views on the current economic situation have dropped to a historic low.
A survey released by the University of Michigan on Friday shows that the preliminary consumer confidence index has dropped to 46.3, the lowest level since May, and also below the median forecast of 47.6 by economists surveyed by Bloomberg.
The current status indicator has dropped from 50.9 last month to 44.7, reaching a historical low. The expected indicator has risen from 46.3 to 47.3, marking the first increase since July.
Consumers expect prices to rise by 4.7% in the coming year, slightly higher than the 4.6% reported last month. They also predict an average annual increase of 3.5% in prices over the next 5 to 10 years, which is also slightly higher than the forecast from September.
The investigator, Joanne Hsu, stated in a declaration that confidence among low-income consumers and those with smaller stock investment portfolios has plummeted this month. Confidence among supporters of the Democratic and Republican parties has increased, but this is offset by the decline in confidence among Independents.
Hsu indicates that 'despite different positions, consumers of various political inclinations all agree that the economic prospects have weakened compared to before the conflict with Iran erupted at the beginning of this year.'
Despite consumer confidence remaining at historically low levels for most of this year, spending has remained healthy. A stable labor market and a strong stock market continue to support consumers' spending on various goods and services.
This survey covers the responses of respondents from September 22 to October 5.
A special report released on Friday regarding how consumers should cope with rising gasoline prices shows that only about 31% of consumers expect to maintain their usual spending levels in the coming year. Slightly over half of those surveyed indicated that they will reduce their spending on household items, cars, dining out, and vacations.












