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Consumer sentiment in the U.S. deteriorated by slightly less than initially estimated in the month of October, the University of Michigan revealed in a report released on Friday.

The report said the consumer sentiment index for October was upwardly revised to 71.7 from the preliminary reading of 71.4.

While the upward revision surprised economists, who expected the index to be unrevised, the final reading was still below September’s 72.8.

The current economic conditions index slid to 77.7 in October from 80.1 in September, while the index of consumer expectations edged down to 67.9 from 68.1.

“The positive impact of higher income expectations and the receding coronavirus has been offset by higher rates of inflation and falling confidence in government economic policies,” said Surveys of Consumers chief economist, Richard Curtin.

He added, “Consumers not only anticipated the highest year-ahead inflation rate since 2008 in the October survey, consumers also expressed greater uncertainty about the year-ahead inflation rate than anytime in nearly forty years.”

The report showed one-year inflation expectations rose to 4.8 percent in October from 4.6 percent in September, while five-year inflation expectations slipped to 2.9 percent from 3.0 percent.


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