University of Michigan Reports the Preliminary Results of Its Consumer Sentiment Index for November

Posted on November 10, 2024

On Friday, the University of Michigan released the preliminary results of its Surveys of Consumers for November.

  • The Index of Consumer Sentiment increased to a reading of 73.0 in November, up from 70.5 in October. This is a month-over-month increase of 3.5% and up 19.1% year-over-year (61.3 in November 2023).
  • Current Economic Conditions declined to a reading of 64.4 in November, down from 64.9 in October. This is a month-over-month decrease of 0.8% and down 5.7% year-over-year (68.3 in November 2023).
  • The Index of Consumer Expectations increased to a reading of 78.5 in November, up from 74.1 in October. This is a month-over-month increase of 5.9% and up 38.2% year-over-year (56.8 in November 2023).

In remarks and analysis prepared to accompany the report, Surveys of Consumers Director Joanne Hsu said:

“Heading into the election, consumer sentiment improved for the fourth consecutive month, rising 3.5% to its highest reading in six months. While current conditions were little changed, the expectations index surged across all dimensions, reaching its highest reading since July 2021. Expectations over personal finances climbed 6% in part due to strengthening income prospects, and short-run business conditions soared 9% in November. Long-run business conditions increased to its most favorable reading in nearly four years. Sentiment is now nearly 50% above its June 2022 trough but remains below pre-pandemic readings. Note that interviews for this release concluded on Monday and thus do not capture any reactions to election results.

Year-ahead inflation expectations fell slightly from 2.7% last month to 2.6% this month. The current reading is the lowest since December 2020 and sits within the 2.3–3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations inched up from 3.0% last month to 3.1% this month, remaining modestly elevated relative to the range of readings seen in the two years pre-pandemic.”

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