FX.co ★ US Consumer Sentiment Near Record Low

The Consumer Sentiment Index from the University of Michigan experienced a modest uptick in November, reaching 51.0, compared to an initial figure of 50.3, following the conclusion of the federal shutdown. However, this increase still marks the second-lowest recording in history, trailing just above the low observed in June 2022, as consumers face persistent challenges with elevated prices and dwindling incomes. The Current Economic Conditions Index saw a significant decline of 12.8%, hitting an unprecedented low of 51.1, which indicates a notable decrease of over 10% in the evaluation of personal finances and spending conditions for durable goods. Conversely, the Consumer Expectations Index saw a slight rise of 1.4%, achieving a score of 51.0. By the close of the month, consumer sentiment among those holding substantial stock portfolios declined by approximately 2 points since October, likely influenced by recent market downturns. Short-term inflation expectations moderated slightly to 4.5% from the previous 4.6%, continuing a three-month trend of decrease, yet remaining above January's 3.3%. Meanwhile, long-term inflation expectations saw a decrease from 3.9% to 3.4%.