Consumer Sentiment Drops to 10-Year Low in November

Consumer Sentiment was 67.4 in November according to the University of Michigan Consumer Sentiment Index. November’s figure was 4.3 points lower than the October reading and 9.5 points lower the November 2020 index. The Current Economic Conditions Index fell 4.1 points from the previous month to 73.6 and is 13.4 points below the November 2020 index. The Consumer Expectations Index declined 4.4 points to 63.5 and is 7 points lower than a year ago.

“Consumers expressed less optimism in the November 2021 survey than any other time in the past decade about prospects for their own finances as well as for the overall economy. The decline was due to a combination of rapidly escalating inflation combined with the absence of federal policies that would effectively redress the inflationary damage to household budgets. While pandemic induced supply-line shortages were the precipitating cause, the roots of inflation have grown and spread more broadly across the economy.” said Richard Curtin, chief economist of UM Surveys of Consumers.

Read the University of Michigan Surveys of Consumers release.