Source: University of Michigan
Consumer sentiment slipped to a decade-low in early November, dragged by concerns over the ongoing uptick in inflation.
- The Consumer Sentiment Index stood at 66.8, down 6.8% from October’s 76.9 and 13.1% lower than the 76.9 the same month last year.
- The Current Economic Conditions indicator was recorded at 73.2, down 5.8% from 77.7 in October and 15.9% from 87.0 in November 2020.
- The Index of Consumer Expectations was 62.8, down 7.5% from 67.9 in October and 10.9% from 70.5 a year ago.
- Chief Economist Richard Curtin attributed the decline to the escalating inflation rate and concerns that policies have yet to address the issue.
- Curtin said half of all families expect a decline in real incomes in 2022 due to inflation-adjusted gains.
- Rising prices for homes, vehicles, and durables were also reported more often than any other time in over 50 years.