Key Facts
• October consumer sentiment index dropped to a five-month low, per University of Michigan.
• Current conditions index reached its lowest level since August 2022.
• Inflation and high prices remain top concerns for households.
• September core CPI growth fell below market expectations, excluding food and energy.
• Food inflation slowed, but cereal and non-alcoholic beverage prices rose faster.
• Gasoline prices increased, while auto insurance costs declined.
• Durable goods purchasing conditions fell to 2022 levels.
• Survey conducted from September 23 to October 20, 2025.
• Federal data releases disrupted by partial government shutdown.
• Private data shows slower job growth but limited layoffs.
Summary
The University of Michigan’s October consumer sentiment index fell to its lowest level in five months, reflecting ongoing concerns about inflation and high prices. The current conditions index hit its lowest point since August 2022. While September’s core CPI growth was below expectations, mixed trends emerged: food inflation slowed, but prices for key items like cereal and beverages rose, alongside accelerating gasoline costs. Conversely, auto insurance prices declined. Durable goods purchasing conditions also dropped to 2022 levels. The survey, conducted from late September to late October, highlighted that consumers perceive little economic change from the previous month. Despite a partial government shutdown disrupting official economic data, private indicators suggest slower job growth but limited layoffs. Inflation remains the primary concern for households.
