US consumer sentiment sits near its record low before the midterms

Consumer sentiment, October

48.0 index points

The University of Michigan index fell to 48.0 in October from 48.1 in September, the second-lowest reading ever recorded.

The record low of 44.8 came in May, not long after the war with Iran began, and sentiment is now 10 per cent below a year ago.

Consumers now expect inflation of 4.7 per cent over the next year, up from 3.4 per cent in February.

What's next

Federal Reserve officials meet next week and are broadly expected to keep the benchmark rate at 3.75 to 4.00 per cent.