Preliminary data from the University of Michigan, released on Friday, indicates a more significant than anticipated improvement in consumer sentiment for November. The consumer sentiment index rose to 73.0, up from 70.5 in October, surpassing economists' expectations, which had predicted an increase to 71.0.
This notable rise places the consumer sentiment index at its highest point since April, when it reached 77.2. The primary driver behind this upswing was an enhanced outlook among consumers, as the index of consumer expectations jumped to 78.5 in November from 74.1 in the previous month.
"The expectations index has shown remarkable growth across all areas, achieving its most elevated reading since July 2021," remarked Joanne Hsu, Director of the Surveys of Consumers.
Conversely, there was a slight decline in the index of current economic conditions, which edged down to 64.4 in November from 64.9 in October.
Hsu explained that the data collection for this release concluded on Monday, meaning it does not account for reactions to the recent election results.
Regarding inflation, the report noted a decrease in year-ahead inflation expectations, which dropped to 2.6 percent in November from 2.7 percent in October. This marks the lowest level since December 2020. In contrast, long-term inflation expectations edged slightly higher to 3.1 percent from 3.0 percent in October, maintaining a modest elevation compared to the pre-pandemic levels observed over the past two years.
