From the Desk - Economic Commentary
Scott Goedken, Institutional Strategies Director - 10/09/2026
The University of Michigan Consumer Sentiment Survey's preliminary October consumer sentiment index declined to 46.3 from September's final reading of 48.1 and came in below expectations of 47.8. The current conditions index fell to 44.7 from 50.9, while the expectations index, which measures consumers' outlook for economic and financial conditions over the coming year, increased to 47.3 from 46.3. One-year inflation expectations rose to 4.7% from 4.6%, and five-year inflation expectations increased to 3.5% from 3.4%.
The headline sentiment index combines consumers' views of current conditions with their expectations for the year ahead. Despite the improvement in expectations index, the headline reading remains just above the record low of 44.8 reached in May 2026. The survey's inflation expectations measures remain closely watched by the Federal Reserve and financial markets.
Treasury yields remain near multi-year highs this morning, while the DJIA, S&P 500, and Nasdaq are all higher in early trading.
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