US consumer sentiment weakens in October

WASHINGTON (Reuters) – U.S. consumer sentiment fell sharply in October as households anticipated higher inflation over the next year, a survey showed on Friday.

The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 63.0 this month compared to 68.1 in September. Economists polled by Reuters had forecast a preliminary reading of 67.2.

“Nearly all demographic groups posted setbacks in sentiment, reflecting the continued weight of high prices,” Joanne Hsu, the director of the University of Michigan’s Surveys of Consumers, said in a statement.

The survey’s reading of one-year inflation expectations increased to 3.8% this month from 3.2% in September.

The five-year inflation outlook rose to 3.0% from 2.8% in the prior month, staying within the narrow 2.9-3.1% range for 25 of the last 27 months.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)