Consumer sentiment slightly dipped to 95.5 in October, coming in just below the prior reading and Street estimate of 96.
In September, consumer sentiment rose to 93.2, a major rebound from August when sentiment fell the most since 2012 amid an escalating trade war between the U.S. and China.
Consumers surveyed by the University of Michigan have repeatedly expressed concern about trade tensions between the economic powers, which have resulted in billions of dollars in tariffs on consumer goods.
"The most spontaneous references were to the negative impact of tariffs, which fell to 27% in October from last month's 36%," said Richard Curtin, the survey's chief economist.
After months of escalation, President Donald Trump announced earlier this month that he had reached an agreement in principle with China on a phase-one trade deal. The details, however, still have to be hammered out.
The White House suspended a planned tariff hike on $250 billion worth of goods in the wake of progress in trade negotiations. However, a 15% tariff is still set to take effect on Dec. 15, right in the midst of the holiday shopping season.
References to impeachment inquiry totaled just 2% in October.
"The focus of consumers has been on income and job growth, while largely ignoring other news," Curtin said. "To be sure, the multiple sources of uncertainty will keep consumers focused on potential threats to their prevailing optimism, with the most critical being threats that could significantly diminish their job and income prospects."
-- CNBC's Mallika Mitra contributed to this report