US Consumer Sentiment Hits Five-Month Low as Finances Strain
Consumer sentiment fell in October as household debt rose, savings weakened and wage growth trailed inflation, adding pressure to consumer companies.
Key takeaways
- US consumer sentiment fell to 46.3 in October, a five-month low.
- Household debt topped $18 trillion, while personal savings rates were below their long-term average.
US consumer sentiment fell to 46.3 in October, its lowest level in five months, according to the University of Michigan. The reading was down from 48.1 in September as households faced pressure from costs including fuel and medical insurance.
Charts from Goldman Sachs highlighted rising household debt, which topped $18 trillion, and personal savings rates below their long-term average. Packaged-food companies have also reported signs of pressure: PepsiCo cut its full-year profit outlook, while McCormick reported sluggish demand in its latest quarter.
Average hourly earnings rose 0.1% month over month and 3% year over year in September, Labor Department data showed. Government data put inflation at 3.4% year over year in August.
This article was produced with the help of AI technology. Source: Yahoo Finance
