Following September's modest rebound from Q2's plunge, early October data from UMich sentiment survey was expected to show the rebound continued, but it did not. Preliminary October sentiment slipped from 72.8 to 71.4 (well below the 73.1 expected). That is the second-lowest level since 2011, as Americans grew more concerned about both current conditions and the economic outlook.
The gauge of current conditions fell to 77.9, the lowest since April 2020. A measure of future expectations declined to 67.2
Democrats' confidence picked up modestly in early October...
However, UMich notes that the adage “never let a crisis go to waste” mirrors the range and scale of Biden’s progressive proposals, but consumers see it as too risky a strategy.
When asked about their confidence in economic policies, favorable evaluations fell to 19% in early October from Biden’s honeymoon high of 31% in April, while unfavorable policy evaluations rose to 48% in early October from 32% in April.
Buying Conditions for homes rebounded very modestly from 40 year lows but buying conditions for vehicles and appliances pushed to new record lows...
And finally, inflation expectations for the next year surged to their highest since 2008 (as longer-term inflation expectations dipped)...
“When asked to describe in their own words why conditions were unfavorable, net price increases were cited more frequently than any time since inflation peaked at over 10% in 1978-80,” Richard Curtin, director of the survey, said in a statement.