US consumer confidence slips by less than forecast in November
By Alexander Bueso
Date: Wednesday 23 Nov 2022
(Sharecast News) - Consumer confidence worsened by a bit less than expected in November and inflation expectations dipped, the results of a closely followed survey showed.
The University of Michigan's consumer confidence declined from a reading of 59.9 in October to 56.8 (consensus: 55.5).
Nevertheless, that was better than the preliminary reading of 54.7 published roughly a fortnight earlier.
A sub-index tracking expectations came in at 55.6 (preliminary: 52.7), while another linked to the current situation printed at 58.8 which was down from 65.6 (Preliminary: 57.8).
The sub-index for inflation expectations on a 12-month view moved lower by two tenths of a percentage point versus October to reach 4.9% (Preliminary: 5.1%).
In October, the inflation gauge for one year ahead had been at 5.0%.
That for price expectations five to ten years out meanwhile was unchanged at 5.0%, in line with the first estimate.
According to survey director Joanne Hsu, October's decline in confidence offset roughly a third of the gains since June, when the index had plumbed a record low.
Together with inflation, she blamed higher borrowing costs, lower asset values and softer labour market expectations.
Buying conditions for durables fell most sharply, by 19%, after improving markedly in October, and were left at September's level, Hsu said.
Longer-term business conditions dropped modestly, while short-term business conditions and personnal finances were about unchanged.
On inflation expectations, Hsu pointed out how those five to ten years ahead had remained in a "narrow but elevated" range between 2.9-3.1% in 15 out of the past 16 months.
"Uncertainty over these expectations remained at an elevated level, indicating that the general stability of these expectations may not necessarily endure."
-- More to follow --
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