Consumer Sentiment Rose 3.5% in Early November

Ann Arbor, MI, November 8, 2024-Consumer sentiment rose 3.5% to 73.0 in early November, according to preliminary results from the University of Michigan Survey of Consumers.

This represents a 19.1% increase year over year.

“Heading into the election, consumer sentiment improved for the fourth consecutive month, rising 3.5% to its highest reading in six months,” says to Joanne Hsu, Survey of Consumers director. “While current conditions were little changed, the expectations index surged across all dimensions, reaching its highest reading since July 2021. Expectations over personal finances climbed 6% in part due to strengthening income prospects, and short-run business conditions soared 9% in November. Long-run business conditions increased to its most favorable reading in nearly four years. Sentiment is now nearly 50% above its June 2022 trough but remains below pre-pandemic readings. Note that interviews for this release concluded on Monday and thus do not capture any reactions to election results.

“Year-ahead inflation expectations fell slightly from 2.7% last month to 2.6% this month. The current reading is the lowest since December 2020 and sits within the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations inched up from 3.0% last month to 3.1% this month, remaining modestly elevated relative to the range of readings seen in the two years pre-pandemic.”