{"id":1603553,"date":"2025-10-24T14:10:38","date_gmt":"2025-10-24T18:10:38","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1603553"},"modified":"2025-10-24T14:10:38","modified_gmt":"2025-10-24T18:10:38","slug":"umich-sentiment-slips-in-october-driven-by-dems-older-americans","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/umich-sentiment-slips-in-october-driven-by-dems-older-americans\/1603553\/","title":{"rendered":"UMich Sentiment Slips In October Driven By Dems & Older Americans"},"content":{"rendered":"

UMich Sentiment Slips In October Driven By Dems & Older Americans<\/span><\/p>\n

\n

The final October print for UMich Consumer Sentiment data slipped a smidge from the preliminary print, to its weakest since May as\u00a0a modest increase in sentiment among younger consumers was offset by decreases among middle-age and older consumers<\/strong>.<\/p>\n

The final October sentiment index fell to 53.6 from 55.1 in September, a deterioration from the preliminary reading, according to the University of Michigan.\u00a0<\/p>\n

The survey of sentiment showed the current conditions gauge dropped to a multi-year low of 58 –\u00a0<\/strong>the lowest since 2022.<\/em><\/p>\n

The University’s gauge of consumer expectations slid to 50.3, a five-month low.<\/em><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

“Overall, consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers\u2019 minds,” according to\u00a0Joanne Hsu, director of the survey,\u00a0with the spread between Democrats’ and Republicans’ confidence at a record high…<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Year-ahead inflation expectations ebbed from 4.7% last month to 4.6% this month. <\/strong>These expectations are currently midway between the readings seen a year ago and the highs seen this year in May in the wake of the initial announcements of major tariff changes. Long-run inflation expectations increased from 3.7% last month to 3.9% this month but remains below this year\u2019s high point seen in April.<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Notably the rise in longer-term inflation expectations was driven by Independents…<\/p>\n

<\/a><\/p>\n

If Democrats are right, we are about to see a yuuge surge in inflation… (that’s a big ‘if’)…<\/strong><\/p>\n

<\/a><\/p>\n

Of course, take the UMich data on inflation with a pinch of salt as thanks to Democrats’ panic, it is the only ‘inflation expectation’ that is elevated…<\/strong><\/p>\n

<\/a><\/strong><\/p>\n

Consumers remain frustrated by the persistence of high prices, spontaneously mentioning high prices at various points throughout the interviews. <\/strong><\/p>\n

About 45% of consumers referenced that their personal finances were eroded by high prices, the highest reading since August 2024.<\/p>\n

Labor market expectations were stable this month, <\/strong>albeit at generally unfavorable levels.<\/p>\n

About 64% of consumers expect unemployment to increase in the year ahead, just shy of this year\u2019s high of 66% seen in March. For the eleventh consecutive month, more than 60% of consumers expect any income gains over the next year to be outstripped by inflation.<\/strong><\/p>\n

The expected probability of job loss waned slightly but remained elevated<\/p>\n

Finally, there was little evidence this month that consumers connect the federal government shutdown to the economy. <\/strong>Only about 2% spontaneously referenced the shutdown during this month\u2019s interviews, compared with the 10% of consumers who did so in January 2019 during that 35-day shutdown.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 10\/24\/2025 – 10:10<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/umich-sentiment-slips-october-driven-dems-older-americans<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

UMich Sentiment Slips In October Driven By Dems & Older Americans The final October print for UMich Consumer Sentiment data slipped a smidge from the…<\/p>\n","protected":false},"author":0,"featured_media":1603554,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1603553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6J9L","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/10\/bfm4AFC-9DS0hS.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1603553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1603553"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1603553\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1603554"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1603553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1603553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1603553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}