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Consumer sentiment nears all-time low ahead of midterms
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Consumer sentiment in the U.S. remains near historic lows, with the University of Michigan's index at 48.0 in October, the second-lowest reading in 74 years, influenced by inflation and high gasoline prices.
- Gasoline prices have surged about 43% since the Iran war began, with global oil prices hitting $116 a barrel and the average U.S. gas price at $4.29 per gallon, contributing to strained household budgets.
- Inflation rose at an annual rate of 3.7% in September, well above the Federal Reserve's 2% target, leading to higher long-term Treasury yields and increased borrowing costs for consumers.
- Consumer sentiment improved slightly among Democrats and Republicans in October but declined among independents, highlighting political divisions ahead of the midterm elections.
- Despite robust GDP growth and increased consumer spending in recent months, economic challenges persist, including rising prices and sluggish hiring, which could impact voter concerns about affordability.
