Consumer sentiment falls to 46.3 as inflation expectations tick up
The University of Michigan survey missed forecasts. Households feel worse about the present, slightly better about the future.
Economy · Friday, October 9, 2026 · 12:30 PM ET
The University of Michigan's preliminary consumer sentiment index for October came in at 46.3, below the forecast of about 47.5 to 47.6 and down from 48.1 in September, according to Investing.com, TMGM and ActionForex.
Present worse, future a little better
ActionForex reports that the current economic conditions measure fell from 50.9 to 44.7, while the expectations measure rose from 46.3 to 47.3. The survey said buying conditions for durable goods plummeted amid high prices and borrowing costs, and the AP reported that sentiment fell sharply among lower-income households and those with smaller stock holdings.
Inflation expectations
One-year inflation expectations rose to 4.7% from 4.6%, and long-run expectations to 3.5% from 3.4%, per ActionForex. The AP also reported the 4.7% one-year figure. ActionForex says both measures rose for a second month, to their highest since May.
Why it matters
Rising inflation expectations matter to the Fed, which is weighing more rate increases. See our Waller story. Oil prices feed into this too: oil. A sentiment survey is one snapshot of what households say, not a measure of what they spend.