Consumer Sentiment Declined 5.2% to 56.8 in November

Ann Arbor, MI, November 23, 2022-Consumer sentiment declined 5.2% to 56.8 in November, according to final results from the University of Michigan Survey of Consumers. 

This represents a 15.7% decline year over year. 

“Consumer sentiment fell 5% below October, offsetting about one-third of the gains posted since the historic low in June,” according to Survey of Consumers director, Joanne Hsu. “Along with the ongoing impact of inflation, consumer attitudes have also been weighed down by rising borrowing costs, declining asset values, and weakening labor market expectations. Buying conditions for durables, which had markedly improved last month, decreased most sharply in November, falling back 19% to its September level on the basis of high interest rates and continued high prices. Long-term business conditions declined a more modest 6%, while short-term business conditions and personal finances were essentially unchanged. 

“Inflation expectations were also little changed from October. The median expected year-ahead inflation rate was 4.9%, down slightly 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. Uncertainty over these expectations remained at an elevated level, indicating that the general stability of these expectations may not necessarily endure.”