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Consumer confidence fell more than expected in October and to the lowest level in two years, according to the University of Michigan’s survey of consumers.
The index of consumer sentiment fell to 87.2 from 91.2. Economists had forecast that it rose to 88.2, according to Bloomberg.
Consumers became more pessimistic about the economy, and half of them anticipated that there would be a downturn within the next five years.
But Richard Curtin, the surveys of consumers chief economist, said this may reflect temporary concerns ahead of the elections.
“Along with small increases in interest rates, consumers also anticipate a mild slowdown in job creation that is likely to prevent any further declines in the national unemployment rate,” he said.
Long-term inflation expectations fell to a record low.