Consumer Sentiment was 54.7 in November, according to the University of Michigan Consumer Sentiment Index. November’s figure was 5.2 points below Octobers reading and is 12.7 points below the November 2021 index. The Current Economic Conditions Index dropped 7.8 points from the previous month to 57.8 and is 15.8 points below the November 2021 index. The Consumer Expectations Index decreased by 3.5 points to 52.7 and is 10.8 points lower from a year ago.
“Consumer sentiment fell about 9% below October, erasing about half of the gains that had been recorded since the historic low in June. All components of the index declined from last month, but buying conditions for durables, which had markedly improved last month, decreased most sharply in November, falling back 21% on the basis of high interest rates as well as continued high prices. Overall, declines in sentiment were observed across the distribution of age, education, income, geography, and political affiliation, showing that the recent improvements in sentiment were tentative. Instability in sentiment is likely to continue, a reflection of uncertainty over both global factors and the eventual outcomes of the election”. .said Joanne Hsu, Director of UM Surveys of Consumers.
Inflation expectations are little changed. The median expected year-ahead inflation rate was 5.1%, up from 5.0% last month. Long run inflation expectations, currently at 3.0%, have remained in the narrow (albeit elevated) 2.9-3.1% range for 15 of the last 16 months.
Read the University of Michigan Surveys of Consumers release.
