What was the University of Michigan Consumer Sentiment index in October 2025?

The University of Michigan Consumer Sentiment index in October 2025 was 55, down slightly from 55.1 in September but mostly in line with analyst expectations.

How did consumer expectations about the future economy change in October 2025?

Consumer expectations about the future economy declined in October 2025, with the future expectations component of the index dropping to 51.2 from 51.7 the prior month, indicating growing concerns about the economic outlook.

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Consumer Confidence Steady Despite Darkening Economic Outlook

Q: What were consumer inflation expectations in October 2025?

Consumers expected prices to rise 4.6% over the next year in October 2025, only slightly lower than the 4.7% expected in the previous report. Over the next five years, they forecast inflation of 3.7%, unchanged from the prior month.

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Summary

Consumer sentiment index holds at 55 in October
Current conditions improve, but future expectations decline
Inflation expectations little changed at 4.6% over next year

Consumer Confidence Steady Despite Darkening Economic Outlook

On October 10, 2025, the latest University of Michigan Consumer Sentiment report offered a mixed picture of the American consumer's mindset. The preliminary October index came in at 55, down slightly from 55.1 in September but mostly in line with analyst expectations.

The current conditions component of the index ticked up to 61 from 60.4 the prior month, suggesting consumers felt relatively confident about the present economic situation. However, the future expectations component declined to 51.2 from 51.7, indicating growing concerns about the economic outlook.

Inflation expectations also remained elevated, with consumers expecting prices to rise 4.6% over the next year, only slightly lower than the 4.7% expected in the previous report. Over the next five years, they forecast inflation of 3.7%, unchanged from the prior month.

Despite the tepid mood, the U.S. stock market opened higher on the day, with the Dow Jones Industrial Average gaining 0.59% and the S&P 500 and Nasdaq Composite also posting modest gains. Investors appeared to take the consumer sentiment data in stride, focusing instead on the start of the third-quarter earnings season, which had kicked off the previous day with strong results from companies like Delta Air Lines, PepsiCo, and Levi Strauss.

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