December 9, 2022

US consumer sentiment rises in October amid inflation-Xinhua

Customers shop at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, although inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)

WASHINGTON, Oct. 28 (Xinhua) — U.S. consumer sentiment rose slightly in October, although inflation squeezed the incomes of many American households.

The University of Michigan’s index of consumer expectations rose to 59.9 in October from 58.6 in the previous month, according to data released Friday.

The index was in line with economists’ expectations in a recent Wall Street Journal survey.

“Recent news of a slowdown in consumer spending in the third quarter is not surprising given that it was just 10 points above the all-time high reached in June,” said Jon Hsu, director of the monthly survey.

Terms of purchases of durable goods – defined as goods lasting three years – rose 23 percent in October after supply restrictions were eased. However, the survey indicated that business conditions are expected to deteriorate by 19% in the coming year.

“These contrasting patterns reflect considerable uncertainty about inflation, policy responses and developments around the world, and consumer sentiment is consistent with a slowdown in the economy,” Hsu said.

Inflation expectations in the U.S. rose in October after retreating slightly in September. Consumers expect prices to rise 5 percent next year, compared with a 4.7 percent increase in the previous month.

Expectations for inflation over the next five years rose to 2.9 percent from 2.7 percent in the previous month.

The survey came amid the worst U.S. inflation in four decades, which economists said was caused by the current administration’s profligate spending.

A customer shops at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, even as inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)

A customer shops at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, even as inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)

A customer shops at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, even as inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)

A customer shops at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, even as inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)

A customer shops at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, even as inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)

A customer shops at a supermarket in Washington, DC, United States on October 28, 2022. U.S. consumer sentiment rose slightly in October, although inflation squeezed the incomes of many American households. (Photo by Ding Shen/Xinhua)