A report from
the University of Michigan revealed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment jumped 3.5 per cent m-o-m to 73.0
in early November. This represented the highest reading since April (77.2).
Economists had forecast
the indicator would increase to 71.0
this month, up from the October final reading
of 70.5.
According to
the report, the index of current economic conditions fell 0.8 per cent m-o-m to 64.4 in November, while the
index of consumer expectations climbed 5.6 per cent m-o-m to 78.5.
The report also
revealed that the estimates of year-ahead expected inflation slipped from 2.7
per cent in October to 2.6 per
cent early this month, the lowest level since December 2020 (2.5 per cent). Meanwhile, the 5-year expected inflation increased from 3.0 per cent to 3.1 per
cent.
Commenting on
the latest survey, Surveys of Consumers
Director Joanne Hsu noted that interviews for the release concluded on Monday
and thus did not capture any reactions to election results. She also said the
expectations index surged across all dimensions, reaching its highest reading
since July 2021. “Sentiment is now nearly 50% above its June 2022 trough but
remains below pre-pandemic readings” she added.