Americans feel gloomier about money as prices and rates bite

What happened

US consumer sentiment slipped in October to its lowest level in five months, Bloomberg reported. According to the report, high prices and rising interest rates weighed on people’s morale. The move was modest: sentiment edged down rather than plunging.

Why it matters

When people in the US feel worse about money, they tend to spend more carefully, and US shoppers matter a lot for the jobs and exports of countries like Mexico and Canada. Sentiment surveys also show how strongly inflation is felt day to day, the same pressure you notice when groceries or a phone plan cost more than last year. Higher rates, in general, make credit cards and student loans more expensive.