Inflation and high prices remain top concerns, with little change in how consumers view their finances or the overall economy, according to the University of Michigan.

ANN ARBOR, Mich. -- U.S. consumer sentiment slipped modestly in October, with the University of Michigan’s Surveys of Consumers reporting a 1.5-point decline from September. While younger consumers showed a slight uptick in optimism, confidence among middle-aged and older adults fell, leaving overall sentiment largely unchanged.

Current personal finances improved slightly, but expectations for the year ahead declined. Inflation and high prices remain the leading concerns, though few consumers cited the recent federal government shutdown as a factor. Only 2% mentioned it, compared with 10% during the 2019 shutdown.

“Overall, consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers’ minds,” University of Michigan Surveys of Consumers Director Joanne Hsu said.

Year-ahead inflation expectations edged down to 4.6% from 4.7% in September, while long-run expectations rose slightly to 3.9%. The increase in long-term projections was mainly among independents and Republicans, according to the survey.