U.S. Consumer Sentiment at 73.0, Highest in 6 Months Pre-Election

Nov 8, 2024, 03:03 PM

The University of Michigan's preliminary consumer sentiment index for November rose to 73.0, surpassing the forecast of 71.0 and the previous month's reading of 70.5. This marks the fourth consecutive month of improvement, reaching the highest level in six months. The surge in sentiment was primarily driven by an increase in consumer expectations, which climbed to 78.5 from 74.1, the highest since July 2021. Despite this, current conditions remained relatively stable at 64.4, slightly down from the previous 64.9. Inflation expectations for the next year decreased to 2.6% from 2.7%, while long-term expectations for the next five to ten years edged up to 3.1% from 3.0%. The survey period concluded before the recent election, suggesting that the final November reading could be even higher, especially as consumer expectations soared with Trump leading in the polls.