US consumer sentiment near record low as frustration over economy mounts
US consumer sentiment has plummeted to its lowest levels since 2011. The LSEG/Ipsos Primary Consumer Sentiment Index fell 5.3 points to 45.2 in October 2026, marking the second-largest monthly drop on record. This decline coincides with a 15-year low for sentiment ahead of the holiday season. While the University of Michigan index previously approached record lows, Goldman Sachs attributes the ongoing slump to lower happiness levels. Business operators now report depressed demand that does not align with standard inflation or employment metrics.
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- ✓ The LSEG/Ipsos Primary Consumer Sentiment Index reached 45.2 in October 2026, the lowest reading since October 2011.
- ✓ The University of Michigan consumer sentiment index hit record lows this year.
- ✓ The LSEG/Ipsos Index saw a 5.3 point drop from the previous month, the second-largest monthly decline on record after April 2020.
What changed
The LSEG/Ipsos Primary Consumer Sentiment Index recorded its second-largest monthly decline on record, falling to 45.2.
Live updates
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US Consumer Sentiment Hits 15-Year Low as Economic Gloom Deepens
US consumer sentiment has plummeted to its lowest levels since 2011. The LSEG/Ipsos Primary Consumer Sentiment Index fell 5.3 points to 45.2 in October 2026, marking the second-largest monthly drop on record. This decline coincides with a 15-year low for sentiment ahead of the holiday season. While the University of Michigan index previously approached record lows, Goldman Sachs attributes the ongoing slump to lower happiness levels. Business operators now report depressed demand that does not align with standard inflation or employment metrics.
Why it matters
Low sentiment arrives before the November 3 midterm elections. Public trust is split, with an ABC News/Washington Post/Ipsos poll showing 37% trust Democrats and 28% trust Republicans on the economy. This disconnect between sentiment and economic metrics complicates forecasting for retail and restaurant investors.
What is confirmed
- The LSEG/Ipsos Primary Consumer Sentiment Index reached 45.2 in October 2026, the lowest reading since October 2011.
- The University of Michigan consumer sentiment index hit record lows this year.
- The LSEG/Ipsos Index saw a 5.3 point drop from the previous month, the second-largest monthly decline on record after April 2020.
Still unconfirmed
- Business operators are facing depressed consumer demand that deviates from standard employment and inflation metrics.
What to watch next
- Q3 earnings reports from retail and restaurant investors
- November 3 midterm election results
confidence 90%Sources used for this update (5)
- congress.net — Goldman Sachs Says 'Lower Happiness' Is Driving Consumer ...
- finance.yahoo.com — Consumer sentiment hits 15-year low ahead of holiday season
- tradingeconomics.com — United States Consumer Confidence News 488336 0
- wearemainstreet.org — Consumer Sentiment Gap Complicates Business Forecasting
- www.europesays.com — Latest U.S. opinion polls | Ipsos - United States ...
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US Consumer Sentiment Drops to 46.3 in Early October
The University of Michigan consumer sentiment index fell to 46.3 in early October, down from 48.1 in September. This decline brings the gauge close to the record low of 44.8 set in May. Households report mounting frustration with the cost of living, driven by high borrowing costs and energy prices linked to the Middle East conflict. Current economic conditions reached an all-time low ahead of the November 3 midterm elections. Corporate executives are also reporting increased pessimism about the economy due to stubborn inflation.
Why it matters
Consumer sentiment often serves as a leading indicator for household spending and overall economic health. The current slump occurs during a sensitive political window before the US midterms. Persistent inflation and geopolitical instability are directly impacting daily costs for consumers.
What is confirmed
- The University of Michigan consumer sentiment index fell to 46.3 in early October.
- The preliminary Consumer Sentiment Index was 48.1 in September.
- The record low for the sentiment index was 44.8 in May.
- Current economic conditions hit an all-time low before the November 3 midterms.
- Household frustration is driven by the cost of living, borrowing costs, and energy prices.
Still unconfirmed
- Corporate executives are growing increasingly pessimistic about the economy according to a survey by The Conference Board and The Business Council.
What to watch next
- November 3 midterm election results
- Updated University of Michigan sentiment data for late October
- New inflation reports regarding stubborn living costs
confidence 95%Sources used for this update (5)
- tradingeconomics.com — United States Consumer Confidence News 504216et
- www.centraloregondaily.com — US consumer sentiment near record low as frustration over ...
- www.phillytalks.com — Consumer Sentiment Nears Record Low as Gasoline Costs Surge
- dailycallernewsfoundation.org — First Consumers, Now CEOs: Economic Confidence Crumbles As ...
- www.realityrecall.com — US consumer sentiment near record low as frustration over ...
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US consumer sentiment near record low
US consumer sentiment has fallen to near record lows in October due to mounting frustration over higher costs, rising inflation expectations, and high borrowing costs. Despite the gloomy outlook, analysts suggest weak sentiment may not translate into a significant slowdown in consumer spending. Households expressed increasing concern regarding the rising cost of living.
Why it matters
The decline in consumer sentiment comes as the US economy faces mounting concerns over inflation and higher borrowing costs. The sentiment data is being closely watched as the midterms approach. Economists are keenly observing the impact of weak sentiment on consumer spending and overall economic growth.
What is confirmed
- Consumer sentiment fell near record lows in October as inflation fears, high borrowing costs and cost-of-living concerns weigh on consumers.
- Households expressed increasing concern regarding the rising cost of living and higher borrowing costs.
What to watch next
- Consumer spending data
- Inflation rate announcement
- Midterm elections
confidence 80%Sources used for this update (3)
- section.blog.naver.com — 2026.10.09(금) 오후 12시 주요 Headline Summary — 세계 뉴스로 배우는 영어 표현
- www.theglobeandmail.com — Canadian astronaut Joshua Kutryk having a blast at the International Space Station - The Globe and Mail
- www.scotsmanguide.com — Consumers' inflation expectations move higher as cost-of-living frustrations build - Scotsman Guide
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US Consumer Sentiment Falls to Five-Month Low
US consumer sentiment fell to a five-month low in October, driven by mounting frustration over higher costs and rising inflation expectations. Preliminary data shows sentiment dropping to 46.3. Households expressed increasing concern regarding the rising cost of living and higher borrowing costs. Despite the gloomy outlook and plummeting confidence as midterms approach, analysts suggest weak sentiment may not translate into a significant slowdown in consumer spending. Meanwhile, gold prices traded near highs following the economic data release.
Why it matters
Economic confidence is in a tailspin as voters grapple with inflation and borrowing expenses. This drop in morale arrives with political midterms approaching, placing economic pressures at the forefront of the national conversation. Market watchers are closely monitoring how persistently elevated expenses impact overall market behavior.
What is confirmed
- US consumer sentiment fell to a five-month low in October, with the preliminary reading hitting 46.3.
- Inflation expectations rose and gold prices traded near highs following the consumer sentiment report.
- Americans are growing more concerned about higher borrowing costs and the rising cost of living.
Still unconfirmed
- The rising cost of living is specifically driven by the Middle East conflict souring households.
What to watch next
- Watch for final consumer sentiment index revisions to see if preliminary readings hold.
- Monitor upcoming consumer spending reports to see if weak sentiment translates into reduced retail activity.
confidence 95%Sources used for this update (10)
- Reuters — US consumer sentiment near record low as frustration over economy mounts
- Yahoo Finance — Consumer sentiment falls to 5-month low as frustration mounts over higher costs
- CNN — With midterms approaching, Americans’ confidence in the economy is in a tailspin
- Bloomberg.com — US Consumer Sentiment Falls to Five-Month Low in October
- KITCO — Gold price trades near high after preliminary Consumer Sentiment falls to 46.3, inflation expectations rise
- Yahoo Finance — US consumer sentiment deteriorates further in October
- cashwalklabs.io — US consumer sentiment near record low as frustration over economy mounts | Global Cashwalk
- finance.yahoo.com — US consumer sentiment near record low as frustration over economy...
- jobflocks.com — U.S. consumer sentiment near record low as frustration over ...
- finance.yahoo.com — Consumer sentiment falls to 5-month low as frustration mounts ...
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