US consumer sentiment deteriorates further in October

WASHINGTON, Oct 9 (Reuters) - ‌US consumer ​sentiment ​deteriorated further in early October as rising prices because of the ‌Middle East conflict soured households' views of ⁠the economy, a survey showed on Friday.

The University of ‌Michigan's Surveys of Consumers ‌said its Consumer Sentiment Index dropped to 46.3 this month from a final reading ​of 48.1 in September. Economists polled by Reuters had forecast the index at ⁠47.8.

"Frustration over cost-of-living continues to mount, as consumers across the ​political spectrum believe that the trajectory of the economy has weakened since the ​beginning of the year," ‌said Joanne Hsu, the director of the Surveys of Consumers. "Overall, sentiment ⁠for lower-income consumers and those with smaller stock portfolios dropped steeply this month, groups that have ⁠fewer resources to weather increases in prices."

The survey's measure ​of consumer expectations for inflation over the next year nudged up to 4.7% from 4.6% in September. ‌Twelve-month inflation expectations have surged from 3.4% in February before the ‌US-Israeli war with Iran started.

Consumers' expectations for ⁠inflation over the next ‌five years rose ​to 3.5% from 3.4% in September.

(Reporting by Lucia Mutikani; Editing by Andrea ‌Ricci)

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