University of Michigan: Nov. Consumer Sentiment Dips 2.6%


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. consumer sentiment remains near three-year lows, 
with Americans finding only brief relief after the end of a record-long federal 
government shutdown, the University of Michigan's consumer survey published 
Friday (11/21) said.

   The University of Michigan Index of Consumer Sentiment's latest reading of 
51 for November marks a 2.6% decrease from October's level of 53.6.  In line 
with market expectations. Two weeks ago, the reading was at 50.3, its lowest 
since July 2022.

   "After the federal shutdown ended, sentiment lifted slightly from its 
mid-month reading," University of Michigan's consumer survey director Joanne 
Hsu said, referring to the 43-day shutdown that ended on November 12. "However, 
consumers remain frustrated about the persistence of high prices and weakening 
incomes."

   The latest consumer survey showed personal finances and buying conditions 
for durables plunging more than 10% each since October, while "expectations for 
the future improved modestly".

   As the initial positive impact from the government reopening faded, the 
sentiment among consumers with the largest stock market holdings declined two 
points, coinciding with a drop in U.S. equity values, the survey stated.

   While year-ahead inflation expectations fell for a straight month, to 4.5% 
in November from October's 4.6%, short-term inflation expectations remained 
elevated, at above January's 3.3%.

   "Despite 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," the survey," Hsu said.

    




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