US consumer sentiment ticked down in October, survey data showed Friday, with sharp declines seen among those with lower incomes as cost of living worries in the world’s largest economy soar.
The University of Michigan’s consumer sentiment index stood at 46.3 this month, down from 48.1 in September.
While this marked just a small monthly dip, the preliminary report flagged that “sentiment for lower-income consumers and those with smaller stock portfolios dropped steeply.”
Survey director Joanne Hsu added that those groups have fewer resources to withstand price hikes.
“Frustration over cost-of-living continues to mount, as consumers across the political spectrum believe that the trajectory of the economy has weakened since the beginning of the year,” she said.
October’s consumer sentiment reading was 13.6 percent below the same period last year.
Meanwhile, expectations of inflation ticked up, bolstered by rising costs due to war in the Middle East.
Year-ahead inflation expectations rose from 4.6 percent to 4.7 percent this month, Hsu said.
This is substantially higher than the 3.4 percent reported in February, before US-Israel attacks targeting Iran sparked Tehran’s blockage of the Strait of Hormuz, sending energy costs rocketing.
Prices at US gasoline pumps have since surged, with steeper costs cascading through the US economy.