US consumers' inflation expectations worsen in November, UoM says
By Alexander Bueso
Date: Wednesday 22 Nov 2023
(Sharecast News) - Americans' confidence in the economy worsened in November, offset by improved attitudes regarding their personal finances.
But their expectations for inflation continued to move higher, the results of a closely followed survey revealed.
The University of Michigan's consumer confidence index edged lower from a reading of 63.8 for October to 61.3.
A sub-index tied to views on current economic conditions dipped from 70.6 to 68.3, while that tracking their expectations fell from 59.3 to 56.8.
"More-favorable current assessments and expectations of personal finances were offset by a notable deterioration in expected business conditions," said the survey's director Joanne Hsu.
"In particular, long-run business conditions plunged by 15% to its lowest since July 2022. Younger and middle-aged consumers exhibited strong declines in economic attitudes this month, while sentiment of those age 55 and older improved from October."
Expectations for inflation one year ahead meanwhile rose from 4.2% for October to 4.5% - their highest level since April 2023.
For over the longer roun they increased from 3.0% to 3.2%.
"These expectations have risen in spite of the fact that consumers have taken note of the continued slowdown in inflation; consumers appear worried that the softening of inflation could reverse in the months and years ahead," Hsu said.
-- More to follow --
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