US consumer sentiment hits a near-record low before midterm elections

U.S. consumer sentiment plummeted to a near-record low in October, reflecting the impact of rising prices stemming from the Middle East conflict and overshadowing the upcoming midterm congressional elections, a survey revealed on Friday. The University of Michigan's Surveys of Consumers reported the Consumer Sentiment Index fell to 48.0 this month, down from 48.1 in September.

Economists surveyed by Reuters had anticipated the index to be at 46.3, which was also the preliminary October reading. This reading marked the second-lowest on record, falling short of the all-time low of 44.8 set in May, following the onset of the Iran war.

Purchasing power continues to be the primary concern for consumers regarding the economy, according to Joanne Hsu, director of the Surveys of Consumers. The sentiment has slipped 10 percent from last year and 15 percent lower than February, just before the Iran conflict. These survey results align with political polling data indicating that voters harbor a negative view of the economy and the stewardship of President Donald Trump and the Republican Party.