US consumer sentiment nears lowest point since index began ahead of midterm elections

American households are feeling nearly as gloomy about the economy as at any time since the University of Michigan began tracking it. Its October consumer sentiment reading came in at 48. 0, barely changed from September's 48. 1 and well short of the 46. 3 forecast Reuters had gathered from economists. Only May, soon after the war with Iran began, has been worse, at 44. 8. The timing matters because early voting is already underway for the November 3 midterms, which will decide control of Congress for the last two years of President Donald Trump's term. Polls point to Republican vulnerability in the House and possibly the Senate, and Reuters/Ipsos finds Trump's approval at a record low after fuel costs climbed following the late-February strikes on Iran, according to The Independent.

Independents drove the latest slide, with their score falling from 47. 7 to 42. 4. Since January, the share of independents saying higher prices hurt their finances rose 27%, versus 52% for Republicans and 15% for Democrats. Survey director Joanne Hsu said purchasing power dominates how people see the economy. Year-ahead inflation expectations reached 4. 7%, up from 3. 4% in February.

Summarized by PolitiKool from The Independent’s reporting. Read the full story at The Independent →