The University of Michigan’s Index of Consumer Sentiment was confirmed at 46.3 in the final October reading, matching the preliminary estimate and meeting market consensus. The index remains near its May all-time low of 44.8, weighed down by a record-low current conditions sub-index of 44.7. While forward-looking expectations remained steady at 47.3, the headline figure reflects a deterioration from September’s final reading of 48.1, driven by persistent frustration over high prices and borrowing costs.
Inflation expectations also remained at elevated multi-month highs, with the one-year outlook holding at 4.7% and long-run expectations at 3.5%. These levels, the highest since May, reinforce the Federal Reserve's cautious stance following its September interest rate hike. Market reaction was muted as the final data largely confirmed the fragile consumer environment previously reported in the preliminary release.