The numbers: Consumer sentiment fell in November for the fourth month in a row due to worries about higher interest rates as well as war in the Middle East.
The preliminary reading of the sentiment survey declined to 60.4 from 63.8 in October, the University of Michigan said Friday. It’s the weakest reading since May.
The consumer-sentiment survey reveals how consumers feel about their own finances as well as the broader economy.
Key details: Sentiment fell the most among younger and lower-income Americans, the survey found.
A gauge that measures what consumers think about the current state of the economy slid to 65.7 this month from 70.6 in October.
A measurement of expectations for the next six months declined to 56.9 from 59.3.
Both of those indexes also tumbled to a six-month low.
Americans think inflation will average 4.4% in the next year, up from 4.2% in the prior month and 3.2% in September. The uptick reflects the lingering effects of a spike in gas prices at the end of summer.
The official rate of inflation is 3.7%, using the consumer-price index.
Big picture: The economy grew at the fastest pace in the third quarter in a decade excluding the pandemic years of 2020-2021, at least officially.
But the economy probably wasn’t that strong, economists say, and growth is all but certain to slow in the face of higher interest rates.
Consumers themselves are also uncertain about the near-term path of the economy, as the sentiment and other surveys show.
Looking ahead: “The consumer is feeling stretched between the twin pains of inflation and higher interest rates, making them less optimistic about their current and future economic prospects,” said Damian McIntyre, head of Multi Asset Solutions at Federated Hermes.
Market reaction: The Dow Jones Industrial Average
DJIA,
and the S&P 500
SPX,
rose in Friday trading.
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