US Sentiment Falls; France Business Confidence Rises

U.S. consumer sentiment fell in October to a revised 53.6 from 55.1 in September, below an initial October estimate of about 55, signaling deterioration largely tied to persistent price pressures. The decline reflected drops in the current-conditions index (to 58.6) and expectations (to 50.3); year-ahead inflation expectations eased to 4.6% even as long-run expectations rose to 3.9%, and analysts called the result a five-month low with the current-conditions measure weakest since August 2022. By contrast, several European indicators showed modest improvement: euro-zone morale ticked up to -14.2, France’s consumer confidence rose to 90 and business confidence unexpectedly lifted to 97, and the UK’s GfK index improved to -17. Irish sentiment slipped to a three-month low of 59.9. Overall, the data depict U.S. households squeezed by stubborn inflation while parts of Europe show tentative gains ahead of holiday spending and forthcoming budgets.