November University of Michigan Consumer Sentiment Index Final at 51.0—Lowest Since June 2022 (Comprehensive)

Short- and long-term inflation expectations decline

(New York=Yonhap Infomax) Jin Woo Choi—The University of Michigan’s Consumer Sentiment Index, a key gauge of U.S. consumer confidence, fell to its lowest level in nearly three and a half years.

On the 26th (local time), the University of Michigan reported that the final reading for the November Consumer Sentiment Index stood at 51.0, down 2.6 points from the previous month’s 53.6.

This marks the lowest level since June 2022 (50.0). However, it is 0.7 points higher than the preliminary reading of 50.3.

Joanne Hsu, Director of Consumer Surveys at the University of Michigan, noted, “There was a slight improvement compared to the mid-month reading after the end of the federal government shutdown,” but added, “Consumers remain dissatisfied with persistently high prices and weakening incomes.”

Among the main components of the Consumer Sentiment Index, the Current Economic Conditions Index—which reflects consumers’ assessment of present economic conditions—plunged by 7.5 points to 51.1 from 58.6 in the previous month.

The Consumer Expectations Index, which measures consumers’ outlook for the economy, rose by 0.7 points to 51.0.

For November, one-year inflation expectations fell by 0.1 percentage point to 4.5% from 4.6% in the previous month.

Five- to ten-year long-term inflation expectations dropped by 0.5 percentage point to 3.4%.

Director Hsu stated, “Both personal financial conditions and conditions for purchasing durable goods fell sharply by more than 10%, though the outlook saw a slight improvement.”

She added, “For consumers with significant stock holdings, the gains seen in the preliminary reading were fully reversed. Their sentiment declined by about 2 points from October, likely reflecting the stock market downturn over the past two weeks.”

jwchoi@yna.co.kr

(End)