US Consumer Sentiment Slips For 3rd Straight Month In October But Tariff-Fears Fade

American Consumers’ confidence dipped to 94.6 in October (but beat expectations of 93.4) from an upwardly revised September print of 95.6.

A measure of expectations for the next six months fell in October to 71.5, the lowest since June, while a metric of present conditions increased.

Source: Bloomberg

This is the third straight monthly decline in confidence

“Consumer confidence moved sideways in October, only declining slightly from its upwardly revised September level,” said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board.

“Changes to the individual subcomponents were also limited and largely cancelled each other out. The Present Situation Index regained some strength after September’s drop. Consumers’ view of current business conditions inched upward, while their appraisal of current job availability improved for the first time since December 2024. On the other hand, all three components of the Expectations Index weakened somewhat. Consumers were a bit more pessimistic about future job availability and future business conditions while optimism about future income retreated slightly.”

Under the hood, The Conference Board survey shows the trend of a weaker labor market continues…

Source: Bloomberg

Among demographic groups, confidence declined for consumers under 35 years old and, to a lesser extent, among consumers over 55. Confidence improved for consumers aged 35 to 54.

By income, confidence fell for consumers making less than $75K a year, but improved for most of the income groups making more than $75K, with the largest increase among those earning over $200K.

Younger consumers and consumers earning over $75K have been the most optimistic overall.

By partisan affiliation, confidence improved among Independents, declined among Democrats, and was also slightly down among Republicans.

Finally, Guichard concluded:

“Consumers’ write-in responses were led by references to prices and inflation, which continued to be the main topic influencing consumers’ views of the economy. References to tariffs declined further this month but remained elevated.”

However, Consumer assessments of their Family’s Current Financial Situation improved in October after dropping in September.