Consumer Sentiment Largely Unchanged as Inflation, Labor Market Worries Persist, Survey Shows

12:46 PM EDT, 10/10/2025 (MT Newswires) -- US consumer sentiment was little changed in October amid persistent concerns about inflation and labor market challenges, preliminary results from a University of Michigan survey showed Friday.

The main sentiment index reached 55 this month, a tick below 55.1 in September. The consensus was for a 54 reading in a Bloomberg-compiled poll.

"Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers' minds," Surveys of Consumers Director Joanne Hsu said. "At this time, consumers do not expect meaningful improvement in these factors."

The gauge for current economic conditions moved up to 61 in October from 60.4 last month, while the expectations measure fell to 51.2 from 51.7.

Improvements in current personal finances and year-ahead business conditions were countered by drops in projections for future personal finances as well as current buying conditions for durables, the survey showed. Consumers perceive "very few changes" in the overall economic outlook from last month, Hsu said.

"Interviews reveal little evidence that the ongoing federal government shutdown has moved consumers' views of the economy thus far," according to Hsu.

The shutdown, which is now into its 10th day, is likely to stretch into next week, with Congress still seen deadlocked on a funding plan, and the Senate not scheduled to hold any votes until next Tuesday, CNN reported Friday. The shutdown has delayed key data, including the Bureau of Labor Statistics' September employment report.

Year-ahead inflation expectations edged down to 4.6% this month from 4.7% in September, while the long-run outlook held steady at 3.7%, the consumer sentiment survey showed.

Earlier this week, Federal Reserve Governor Michael Barr underscored the possibility of tariffs-linked inflationary pressures becoming more persistent, urging policymakers to move cautiously on cutting interest rates further. A New York Fed survey showed the US labor market outlook worsened further in September as earnings growth expectations reached the lowest in more than four years, while unemployment views increased.

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