US Consumer Sentiment Increases in October amid Inflation
TEHRAN (Tasnim) – US consumer sentiment ticked upward somewhat in October, although inflation continued to strangle the incomes of many American households.
The University of Michigan's consumer sentiment index increased to 59.9 in October, from 58.6 in the previous month, according to data published Friday, Xinhua reported.
The index is in line with economists' expectations in a recent Wall Street Journal poll.
"With sentiment sitting only 10 index points above the all-time low reached in June, the recent news of a slowdown in consumer spending in the third quarter comes as no surprise," according to Joanne Hsu, the director of the monthly survey.
The conditions for purchase of durable goods - defined as items that last three years - increased 23 percent in October, after supply constraints eased. However, business conditions expected in the year ahead became worse by 19 percent, the survey found.
"These divergent patterns reflect substantial uncertainty over inflation, policy responses, and developments worldwide, and consumer views are consistent with a recession ahead in the economy," Hsu said.
Expectations for inflation in the United States grew in October after subsiding somewhat in September. Consumers expect prices to tick up 5 percent over the next year, compared with the 4.7 percent increase expected the previous month.
Expectations for inflation over the next five years climbed to 2.9 percent from 2.7 percent in the month prior.
The survey came amid the worst US inflation in four decades, which economists said was caused by the current administration's profligate spending.
