The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 68.9 this month, compared to a final reading of 70.1 in September. Economists polled by Reuters had forecast a preliminary reading of 70.8.

"While inflation expectations have eased substantially since then, consumers continue to express frustration over high prices," said Surveys of Consumers Director Joanne Hsu. "Still, long run business conditions lifted to its highest reading in six months, while current and expected personal finances both softened slightly.".

The survey's reading of one-year inflation expectations rose to 2.9% from 2.7% in September. Its five-year inflation outlook dipped to 3.0% from 3.1% in the prior month.

"With the upcoming election on the horizon, some consumers appear to be withholding judgment about the longer term trajectory of the economy," said Hsu.