Consumer sentiment sinks to 13-month low as election uncertainty takes a toll

Consumer sentiment took a hit as concerns about the presidential election began to weigh, the University of Michigan said Friday.

Its index for early October slid to 87.9 from 91.2, below expectations of a 92.0 reading among economists surveyed by Econoday.

The sub-index of consumer expectations fell to 76.6, its lowest level in two years, mostly from households with incomes lower than $75,000. The index of current economic conditions ticked up to 105.5 from 104.2 last month.

“It is likely that the uncertainty surrounding the presidential election had a negative impact, especially among lower income consumers,” survey director Richard Curtin wrote in a release. “Without that added uncertainty, the confidence measures may not have weakened.”

Long-run inflation expectations fell to the lowest on record in the October index. Over the next five to 10 years, survey respondents expect inflation to run at 2.4%, down from 2.6% in the prior month.