Americans’ feelings about the economy continue to worsen

By Alicia Wallace, CNN

(CNN) — Americans’ outlooks on the economy remain down in the dumps this month, new data released Friday showed.

The University of Michigan’s preliminary read on consumer sentiment for October showed its closely watched index falling to 46.3 from 48.1 last month.

Consumers are wrangling with a high cost-of-living environment where inflation continues to run above normal and gas prices have soared higher in recent months as a result of the war in Iran. In September, borrowing got even more expensive when the Federal Reserve raised interest rates for the first time in three years.

If Friday’s lower-than-expected reading were to hold when the final data is released later this month, it would be the second-lowest level on record.

The survey dates back to 1952, meaning Americans are feeling worse now than they did during the 1970s oil crisis, 9/11, the Great Recession, the Covid-19 pandemic and the inflation surge afterward.

The five lowest-ever readings for the index all occurred within the past six months (with the record being set in May).

“Frustration over cost-of-living continues to mount, as consumers across the political spectrum believe that the trajectory of the economy has weakened since the beginning of the year,” Joanne Hsu, director of the university’s Surveys of Consumers, said in a statement.

This story is developing and will be updated.

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