Consumer Sentiment Declined 8.7% in Early November

Ann Arbor, MI, November 11, 2022-Consumer sentiment declined 8.7% to 54.7 in early November, according to preliminary results from the University of Michigan Survey of Consumers.

This represents an 18.8% decline year over year.

“Consumer sentiment fell about 9% below October, erasing about half of the gains that had been recorded since the historic low in June,” says Survey of Consumers director Joanne Hsu. “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. 

“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.”