Americans' Economic Mood is Sour Ahead of Midterms

Dow Jones10-23 22:21

Voters' economic mood has never on record been this low heading into a major election.

That's the conclusion of the University of Michigan's latest monthly consumer-sentiment index, which ticked down to 48 in its end-of-month October reading, the second-lowest reading in the survey's history. It was a hair lower from 48.1 in September.

Before this year, the lowest survey reading in an October before a midterm or presidential election was 57.6, recorded in October 2008-just as the financial crisis of 2008-09 was reaching its climax. The survey's data stretch back to the early 1950s.

In November 2008, dissatisfaction with the departing Bush administration and enthusiasm for Barack Obama's campaign helped Democrats capture the White House and both chambers of Congress.

This election season, high gasoline prices, persistent inflation and a stable but staid labor market have all taken a toll on shoppers' nerves. That helps explain why analysts believe Democrats have a fighting chance or better to win races, even in former deep-red strongholds such as Texas.

Price pressures remain front and center for many voters. In October, consumers' expectations for near- and long-term inflation ticked higher.

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