U.S. Consumer Sentiment Falls to 46.3 as Inflation Views Rise

U.S. consumer sentiment fell to a preliminary 46.3 in October, while rising inflation expectations added pressure to the outlook for crypto and interest-rate markets.

The reading declined from September’s final 48.1 and came in below the 47.6 market expectation. The current economic conditions index also weakened, falling to 44.7.

Consumers’ expectations for inflation over the next year rose to 4.7%. The five-year measure increased to 3.5%, with both measures rising for a second straight month and reaching their highest levels since May.

High prices and borrowing costs continued to weigh on consumers’ willingness to buy durable goods. Confidence declined more sharply among lower-income households and people with smaller stock holdings.

The combination of weaker sentiment and higher inflation expectations adds to market concerns over household demand and the path of interest rates.