Michigan Consumer Sentiment Index Declines Less Than Expected in Preliminary October Survey

10:15 AM EDT, 10/10/2025 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index fell slightly to 55.0 in October from 55.1 in September, compared with expectations for a larger decrease to 54.0 in a survey compiled by Bloomberg as of 8:07 am ET.

The current conditions index rose to 61.0 in October from 60.4 in September, while the expectations reading decreased to 51.2 from 51.7.

Michigan said that consumers are concerned about high prices and weakening job prospects. The interviews showed little evidence that consumer sentiments are affected by the government shut down so far.

Respondents saw one-year inflation expectations at 4.6%, down from 4.7% in September, while five-year inflation expectations remained at 3.7%.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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