US consumer sentiment on current economic conditions sank to a record low in October as high prices and borrowing costs squeezed households, University of Michigan data showed on 9 October 2026.
The Current Economic Conditions index dropped to 44.7 from 50.9 in September, a fall of 12.2 per cent in one month. Bloomberg reported that the measure had reached an all-time low. The headline Index of Consumer Sentiment slipped to 46.3, its weakest reading since May and below the 47.6 median forecast in a Bloomberg survey of economists. May’s reading was a record low for the index.
The figures land 25 days before the US midterm elections, and they show rising prices hurting poorer households most while expectations of future inflation keep climbing.
Joanne Hsu, director of the university’s Surveys of Consumers, said buying conditions for durable goods fell sharply because of high prices and borrowing costs. Sentiment dropped steeply among lower-income consumers and those with smaller stock portfolios, which she described as “groups that have fewer resources to weather increases in prices.”
Gains among Democrats and Republicans were cancelled out by a decline among independents, Hsu said. She added that consumers of every political leaning agree the economic outlook has softened since the start of the year, before the Iran conflict.
Households now expect prices to rise 4.7 per cent over the next year, up from 4.6 per cent in September and well above the 3.4 per cent recorded in February, before the conflict began. Five-year expectations rose to 3.5 per cent from 3.4 per cent, against a 2024 range of 2.8 to 3.2 per cent. Both measures rose for a second straight month to their highest levels since May.
Fuel is a large part of the strain. Petrol prices have climbed by more than $1.50 a gallon on average since the war began and have stayed above $4 a gallon since midsummer, according to motoring group AAA. A US gallon is about 3.8 litres.
The survey did carry one brighter signal. The Index of Consumer Expectations rose to 47.3 from 46.3, its first increase since July, as respondents grew slightly more hopeful about their personal finances and business conditions over the coming year. Overall sentiment remains 13.6 per cent lower than a year ago.
Gloomy surveys have not yet translated into weaker spending. Retail sales rebounded sharply in August, helped by purchases of a range of goods and spending at bars and restaurants.
The university will publish final October figures on Friday, 23 October 2026, at 10am Eastern Time, which is 2pm in Accra.
