Consumer Sentiment Steady Amidst Government Shutdown Concerns

The U.S. consumer sentiment index held steady in October, with households largely unfazed by the ongoing partial government shutdown. Despite the steady index, concerns about rising inflation and job market uncertainties continue to overshadow the economic landscape.

The University of Michigan's Surveys of Consumers revealed that the index remained nearly unchanged at 55.0, contrary to economists' predictions of a decline to 54.2. Joanne Hsu, director of the Surveys of Consumers, noted that while high prices and weakening job prospects dominate concerns, the shutdown hasn't significantly altered consumers' economic views yet.

As the shutdown enters its second week, the effects have been far-reaching, causing disruptions to public services, delaying flights, and furloughing federal workers. The absence of key economic data, such as the monthly employment report, underscores the growing uncertainty in consumer expectations, notably reflected in a slight dip in near-term inflation expectations.

(With inputs from agencies.)