Consumer sentiment falls to five-month low in October

U.S. consumer sentiment fell to a five-month low in early October, with inflation continuing to weigh on households, according to the University of Michigan’s preliminary survey released Friday. The sentiment index dropped to 46.3, the lowest since May, below economists’ median estimate of 47.6. Its gauge for current economic conditions sank to 44.7, a record low from 50.9 in September. While expectations rose to 47.3 from 46.3—the first increase since July—overall views worsened as gasoline prices stayed elevated, borrowing costs rose, and hiring cooled. Consumers expected prices to rise 4.7% over the next year and 3.5% annually over five to 10 years. Spending remained relatively healthy despite weak sentiment.