US consumer sentiment improves as inflation expectations ease

New York (ANTARA) – The Consumer Sentiment Index for November stood at 51, up from 48 in October. Both the current economic conditions index and the consumer expectations index also edged higher.

According to the survey, consumers’ inflation expectations for the coming year fell to 4.3 per cent this month from 4.7 per cent in October, while long-term inflation expectations eased to 3.4 per cent in November from 3.5 per cent the previous month.

Despite the improvement, the consumer sentiment index remains 10 per cent below its February level.

While sentiment among lower- and middle-wealth households improved, sentiment among those with the largest stock portfolios fell by 5 per cent following a relatively volatile period in the stock market, said University of Michigan economist Joanne Hsu, the survey’s director.

Consumer comments also pointed to growing concerns about the possibility of an economic bubble forming in the artificial intelligence (AI) sector.

Even so, the survey found, the cost of living remains consumers’ main concern across income groups.

About 57 per cent of respondents spontaneously said high prices had eroded their standard of living, the highest share since May.