The final
reading for the November Reuters/Michigan index of consumer sentiment came in
at 71.8 compared to the flash reading of 73.0 and the October final reading of 70.5.
Still, this was the highest reading in seven months.
Economists
had foreseen the indicator to be revised up to 73.7.
The details of
the latest Surveys of Consumers of the University of Michigan showed that the
index of current economic conditions fell by 1.5 per cent m-o-m to 63.9 this
month, while the index of consumer expectations jumped by 3.8 per cent m-o-m to
76.9.
The report also
showed that the year-ahead inflation expectations slipped from 2.7 per cent in October to 2.6 per cent in November, in line with the preliminary estimates. This was the lowest reading since
December 2020 (2.5 per cent). Meanwhile, the 5-year inflation expectations increased
from 3.0 per cent in October to 3.2 per cent, compared to the preliminary reading of
3.0 per cent. This was the highest print since November 2023 (3.2 per cent).
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted that post-election
moderation in improvement in consumer sentiment reflected the incongruous views
of Republicans and Democrats of how Trump’s policies will influence the economy.
“Ultimately, substantial uncertainty remains over the future implementation of
Trump’s economic agenda, and consumers will continue to re-calibrate their
views in the months ahead,” she added.