Consumer appetite for major household purchases falls in October

The share of U.S. consumers who felt it was a good time to buy large household durables — an indicator of HVAC purchasing intent — fell in October, according to University of Michigan survey data released Friday.

What’s happening: When asked whether now is a good or bad time to buy ‘major household items,’ 34 percent of respondents (across all ages and income levels) in October said it was a good time, down from 37 percent in September — and 41 percent in October 2024. 

• Meanwhile, the share of respondents who felt it was a bad time to buy during the month rose to 62 percent, from 59 percent in September. 

Why it matters: October marked both the lowest level of ‘good time’ responses and the highest level of ‘bad time’ responses in the past 12 months. 

What they’re saying: The most selected reason among those who felt it was a good time to buy during the month was “Prices won’t come down; are going higher,” while the top reason among those who felt it was a bad time was “Prices are high.”

Zoom out: Joanne Hsu, the university’s survey director, wrote Friday that overall consumer sentiment in November lifted slightly when the government shutdown ended. “However, consumers remain frustrated about the persistence of high prices and weakening incomes,” she added.