American consumers' economic sentiment fell to a five-month low amid the burden of high inflation and interest rates.

The University of Michigan announced on the 23rd (local time) that the final reading of the Consumer Sentiment Index for October came in at 48.0.

This is a slight decline from the September final reading of 48.1, marking the lowest level in five months.

Compared to the same month last year (53.6), it represents a 10.4% drop.

The Current Economic Conditions Index, which reflects current economic situations, fell from 50.9 in September to 46.7 in October.

On the other hand, the Index of Consumer Expectations, which indicates future outlooks, rose from 46.3 to 48.8 over the same period.

It was analyzed that concerns over consumers' purchasing power are weighing down economic sentiment.

Joanne Hsu, the director of the survey, explained, "The decline in the current economic conditions index this month was entirely driven by worsening conditions for purchasing durable goods," adding, "Related indicators plummeted by 18% due to concerns over high interest rates and the burden of purchasing costs."

Concerns over inflation also grew.

U.S. consumers' one-year-ahead inflation expectations rose from 4.6% in September to 4.7% in October.

The five-year inflation expectations, which reflect consumers' long-term inflation outlooks, also increased from 3.4% to 3.5% over the same period.

Both indicators reached their highest levels since last May.

Director Hsu analyzed, "With inflation rates having exceeded the target for five years, both short- and long-term inflation expectations have recently risen, revealing the risk that high inflation expectations could become entrenched."

She also stated, "Regardless of political affiliation, consumers agree that inflation poses an overwhelmingly greater risk to the economy than unemployment over the next year."

(Photo: AP, Yonhap News)