Americans are buying less durable goods, which include automobiles, appliances, furniture, and more
October consumer sentiment dropped from 48.1 in September to 48.0 on Friday, according to the University of Michigan’s index, the lowest in five months.
The figure is 10.4% below the 53.6 recorded in October 2025 and 15% lower than February’s level before the Iran war.
The Current Economic Conditions index fell 8.3% to 46.7, driven by an 18% record plunge in Americans buying durable goods, which include automobiles, appliances, furniture, and more.
Several consumers are concerned with growing interest rates and the affordability crisis. Inflation expectations climbed for a second consecutive month, with year-ahead forecasts rising to 4.7% from 4.6%.
Meanwhile, gasoline prices stayed well above $4 per gallon, and nearly 70% of consumers expect increased borrowing costs over the next 12 months.