October 10, 2025 – On Friday, the University of Michigan released Preliminary Results on Consumer Sentiment for October 2025. The following is from Surveys of Consumers  Director Joanne Hsu:

Consumer sentiment moved sideways this month. At 55 index points, sentiment is virtually unchanged from September. Improvements this month in current personal finances and year-ahead business conditions were offset by declines in expectations for future personal finances as well as current buying conditions for durables. Overall, consumers perceive very few changes in the outlook for the economy from last month. Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds. At this time, consumers do not expect meaningful improvement in these factors. Meanwhile, interviews reveal little evidence that the ongoing federal government shutdown has moved consumers’ views of the economy thus far.

Year-ahead inflation expectations ebbed from 4.7% last month to a still-high 4.6% this month. Long-run inflation expectations held steady at 3.7%. Inflation expectations for both time horizons are about midway between the readings seen a year ago and the highs seen this year in April and May in the wake of the initial announcements of major tariff changes.

Source: University of Michigan