Consumer confidence in the United States has fallen to its second-lowest level on record in the last reading before the midterm elections, Al Jazeera reports, as higher food and fuel prices linked to tensions with Iran weigh on households.
The University of Michigan's sentiment index slipped to 48.0 in October from 48.1 in September. Only May's reading of 44.8 was lower. Survey director Joanne Hsu said sentiment was 10% below a year earlier and 15% below February, before the Iran conflict began.
The fall was driven by political independents, whose index dropped to 42.4. Expectations for inflation over the next five years rose to 3.5%. Annual inflation was most recently reported at 3.7%, and petrol averages $4.29 a gallon, according to the AAA motoring group. The Federal Reserve is widely expected to hold interest rates next Wednesday.
Source: Al Jazeera
