Consumer confidence slumps again amid inflation concerns

Consumer confidence slid for the third month in a row, new data shows, a sign that Americans' view of the economy is dimming in the face of a weakening labor market and stubborn inflation.

The University of Michigan's October sentiment index, released Friday, shows consumer sentiment decreased by 1.5% on a monthly basis to 53.6%.

The closely watched consumer sentiment index gauges Americans' outlook on the job market, wages, inflation, business conditions and personal finances on a monthly basis.

"It's the only piece of data that we get in the absence of how consumers are spending," EY-Parthenon Chief Economist Greg Daco told CBS News.

The snapshot of consumer sentiment comes after the Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) — the first piece of federal economic data Wall Street has gotten since the government shutdown began on Oct. 1.

The latest CPI data shows that climbed at annual rate of 3% in September, below economists' expectations but still above the Federal Reserve's annual 2% target. The inflation reading will be a crucial factor in the Fed's federal fund rate decision next week.

— This is a developing story and will be updated