U.S. consumer sentiment holds steady in October despite shutdown uncertainty

U.S. consumer sentiment remained stable in early October, with the University of Michigan’s index dipping slightly from 55.1 to 55.0. Analysts had expected a sharper decline due to the ongoing federal government shutdown. Inflation expectations edged down to 4.6%, signaling moderate confidence among households. Economists believe resilient labor markets and steady wage growth have offset political and fiscal uncertainty, maintaining consumer optimism ahead of the holiday spending season.