November 14, 2023

According to preliminary statistics given by the University of Michigan, consumer mood in the United States fell far more than projected in November.

According to the University of Michigan, the consumer mood index fell to 60.4 in November from 63.8 in October. Economists projected the score to fall to 63.7.

The consumer mood index fell for the fourth straight month, falling to its lowest level since May, when it reached 59.0.

“While current and expected personal finances both improved modestly this month, the long-run economic outlook slid 12%, in part due to growing concerns about the negative effects of high interest rates,” said Joanne Hsu, director of the Surveys of Consumers.

“Ongoing wars in Gaza and Ukraine weighed on many consumers as well.”

“Overall, lower-income consumers and younger consumers exhibited the strongest declines in sentiment,” she added. “In contrast, sentiment of the top tercile of stock holders improved 10%, reflecting the recent strengthening in equity markets.”

The current economic conditions index slumped to 65.7 in November from 70.6 in October, while the index of consumer expectations fell to 56.9 from 59.3.

According to the survey, year-ahead inflation forecasts increased to 4.4 percent in November from 4.2 percent in October, the highest level since 4.7 percent in April.

According to Hsu, the increase shows that the “large increase between September’s 3.2% reading and October’s 4.2% reading was no fluke.”

Long-term inflation forecasts rose from 3.0 percent in October to 3.2 percent in November, the highest level since 2011.

“Gas price expectations, both over the short and long run, rose to their highest readings this year,” Hsu told Reuters.

Source: RTT News
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