Consumer sentiment dips after two monthly gains
- The University of Michigan gauge dropped from 70.1 to 68.9
- Survey head suggests consumer frustration over high prices
- Hurricane and rising mortgage rates are also possible factors
Shoppers walk to their cars at an outlet mall in Kentucky. Photographer: Luke Sharrett/Bloomberg via Getty Images
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(NewsNation) — The monthly track of how Americans feel about the economy dropped slightly this month after two months of small gains.
The University of Michigan’s Index of Consumer Sentiment slipped to 68.9 in October from 70.1 in September, which had been its highest reading since May.
“Consumers continue to express frustration over high prices,” said Joanne Hsu, director of consumer surveys at University of Michigan.
She added that many people appear to be reserving judgment about the economy while they wait for the presidential campaign to finish.
Economists offered a few possible reasons for the downturn, including Hurricane Helene and the ongoing violence in the Middle East.
Also, the decline occurred after the Federal Reserve cut its benchmark interest rate in September. And mortgage rates, which fell in anticipation of the Fed’s rate cut, have climbed in the past two weeks.
Still, consumers have kept spending despite their gloomy responses to economic confidence surveys, buoying the economy. Growth likely reached 3.2% in the July-September quarter, a healthy pace, according to the Federal Reserve Bank of Atlanta.
The Associated Press contributed to this report
