U.S. Consumer Sentiment Deteriorates Slightly Less Than Previously Estimated In November

(RTTNews) - Partly reflecting the end of the U.S. government shutdown, the University of Michigan released a report on Friday showing consumer sentiment in the U.S. deteriorated by slightly less than previously estimated in the month of November.

The University of Michigan said its consumer sentiment index for November was upwardly revised to 51.0 from the preliminary reading of 50.3. Economists had expected the index to be upwardly revised to 50.5.

The consumer sentiment index is still down from 53.6 in October and remains at its lowest level since hitting a record low of 50.0 in June 2022.

"After the federal shutdown ended, sentiment lifted slightly from its mid-month reading," said Surveys of Consumers Director Joanne Hsu. "However, consumers remain frustrated about the persistence of high prices and weakening incomes."

She added, "This month, current personal finances and buying conditions for durables both plunged more than 10%, whereas expectations for the future improved modestly."

The report said the current economic conditions index tumbled to a record low of 51.1 in November from 58.6 in October, while the index of consumer expectations crept up to 51.0 in November from 50.3 in October.

On the inflation front, the University of Michigan said year-ahead inflation expectations edged down to 4.5 percent in November from 4.6 percent in October but remain well above the 3.3 percent seen in January.

Long-run inflation expectations showed a more significant decrease, plunging to 3.4 percent in November from 3.9 percent in October, the report said.

"Despite these improvements in the future trajectory of inflation, consumers continue to report that their personal finances now are weighed down by the present state of high prices," Hsu said.