Consumer Sentiment Declined 5.3% to 60.4 in Early November

Ann Arbor, MI, November 10, 2023-Consumer sentiment declined 5.3% to 60.4 in early November, according to preliminary results from the University of Michigan Survey of Consumers. 

This represents a 6.5% decline year over year. 

“Consumer sentiment slipped for the fourth straight month, falling 5% in November,” reports Survey of Consumers director Joanne Hsu. “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. 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. In contrast, sentiment of the top tercile of stock holders improved 10%, reflecting the recent strengthening in equity markets.

“Year-ahead inflation expectations inched up to 4.4%, indicating that the large increase between September’s 3.2% reading and October’s 4.2% reading was no fluke. The current reading is the highest since November 2022 and remains well above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations also rose, from 3.0% last month to 3.2% this month, the highest reading since 2011. Gas price expectations, both over the short and long run, rose to their highest readings this year.”