University of Michigan inflation anxiety resurges, with the gap between Main Street and Wall Street hitting a record high

The preliminary October University of Michigan consumer sentiment index edged down 0.1 point from September. One-year inflation expectations rose to 4.7%, and long-term inflation expectations climbed to 3.5%, both reaching their highest levels since May. The current economic conditions subindex fell to a record low of 44.7, and buying conditions for durable goods dropped sharply by 18% due to high interest rates. Over the same period, the S&P 500 total return index hit a record high, with the gap between the two reaching an extreme historical level, reflecting a clear decoupling between stock market performance and the actual experience of ordinary consumers.