Consumer sentiment edges down in October, close to record lows
Consumer sentiment fell slightly in October, the final results from the University of Michigan's Surveys of Consumers showed on Friday. The reading came in at 48.0 vs. September's 48.1 (1).
Consumer sentiment measures Americans' feelings about their economic conditions and personal finances, so it's typically viewed as "soft" economic data (compared to hard data like employment numbers or inflation) (2, 3).
Still, soft data can affect the economy because consumers may be more likely to spend less if they have a negative outlook, for instance (3).
A reading of 48.0 is considered very low. It is, in fact, the second-lowest level on record, behind only May of this year, when it measured 44.8 (4).
All the same, Friday's reading was higher than the preliminary figure of 46.3. Economists had expected the preliminary figure to hold — suggesting that, in the end, consumer sentiment was slightly better than forecast (1, 5).
Some market watchers have called into question the reliability of the University of Michigan's survey system, claiming that it undersamples Republicans and uses online surveys, which skew more negative than traditional phone surveys (6).
Sources & Further Reading
- "Final Results for October 2026," UofM Survey of Consumers. October 23, 2026.
- "Consumer Confidence vs. Consumer Sentiment," WT Wealth Management. April 2022.
- "What Is Soft Data vs Hard Data? A Beginner’s Guide," Samuel & Co. Trading. Oct. 19, 2026.
- "Consumer sentiment hits fresh record low in May as Iran war fuels inflation worries," CNBC. May 22, 2026.
- "US consumer sentiment near record low ahead of midterm elections," Reuters. October 23, 2026.
- "Is the vibecession real — or is the survey broken?", Silver Bulletin. June 29, 2026.
