Consumer Mood Softens in November
High prices and softer incomes kept households on edge in November, even as short- and long-term inflation expectations eased, the University of Michigan said.
WASHINGTON – U.S. consumer sentiment was essentially unchanged in November, slipping 2.6 index points from October, according to the University of Michigan.
Sentiment improved slightly after the federal shutdown ended, but consumers continued to report frustration over stubbornly high prices and weakening incomes. Assessments of current personal finances and buying conditions for big-ticket items both tumbled more than 10% this month, signaling growing strain on household budgets.
“Consumers remain frustrated about the persistence of high prices and weakening incomes,” said Surveys of Consumers Director Joanne Hsu.
Expectations for the year ahead, however, improved modestly. That optimism faded among consumers with the largest stock holdings, whose sentiment dropped by about 2 points from October as equity markets slid over the past two weeks.
Inflation expectations showed incremental progress. Year-ahead expectations edged down from 4.6% to 4.5%, the third straight monthly decline, though still higher than the 3.3% reading in January.
Long-run expectations eased to 3.4% from 3.9% last month, remaining slightly above January’s 3.2%.
Despite improved expectations for the future path of inflation, consumers continued to say their current finances are being weighed down by today’s elevated prices, Hsu said.
Source: University of Michigan
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