Consumer sentiment in the United States fell for the third consecutive month in October, as fears of a prolonged government shutdown and persistent inflation weighed on shoppers, according to the University of Michigan’s Survey of Consumers.
The index, though slightly above economists’ expectations, remains well below pre-Trump levels, signaling fragile confidence in the economy.
Reporter: This report really signals that the US economy is still not working for many Americans. Consumer sentiment has fallen year-over-year 22%. That is the seventh weakest reading since World War II. pic.twitter.com/wGhsuMAe1Y
— FactPost (@factpostnews) October 10, 2025
The ongoing shutdown, now in its 10th day, has halted key federal reports on jobs and inflation, heightening uncertainty.
Historically, such shutdowns have caused only modest economic damage but tend to trigger sharp declines in consumer sentiment, which could dampen spending — a key driver of U.S. economic activity.
US consumer sentiment barely budged in October, with Americans still fretting about dim job prospects and higher prices. https://t.co/PH38RwScQq
— Yahoo Finance (@YahooFinance) October 10, 2025
Year-ahead inflation expectations dipped slightly to 4.6%, while long-term expectations held steady.
Federal Reserve Chair Jerome Powell recently described the economic environment as a “challenging situation” amid cooling hiring and sticky prices.
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TIPP Staff
TIPP Staff
TIPP Staff
