(Bloomberg) -- U.S. consumer sentiment slipped in October from a month earlier and Americans’ outlook for inflation in the year ahead continued to rise.
The University of Michigan’s final sentiment index fell to 71.7 from 72.8 in September, data released Friday showed. The figure compared with a preliminary October reading of 71.4.
“The positive impact of higher income expectations and the receding coronavirus has been offset by higher rates of inflation and falling confidence in government economic policies,” Richard Curtin, director of the survey, said in a statement.
The data suggest that despite a recent decline in the spread of Covid-19 infections in many states, concerns about higher prices remain top-of-mind and are depressing consumer optimism. Even so, consumers have a “desire to reestablish spending for a more traditional holiday season,” Curtin said.
Consumers expect inflation to rise 4.8% over the next year, the highest since 2008, from 4.6% a month earlier. They also see inflation rising 2.9% over the next five years, down from 3% in September.
Buying conditions for household durable goods such as appliances and electronics deteriorated in October from a month earlier, according to the University of Michigan report. The index fell to 85 in October, the lowest since 1980.
The gauge of current conditions fell to 77.7 in October from 80.1, while a measure of future expectations declined to 67.9 from 68.1, according to the survey.
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