US: Michigan Consumer climate is cloudier than expected

US consumer sentiment worsened more than expected in November. The University of Michigan’s Consumer Climate Survey fell 5.2 points from the previous month to 54.7. Economists had expected a decline of up to 59.5 points.

In previous months, the indicators recovered somewhat, moving away from the record high of 50.0 points reached in June. In November, the assessment of both expectations and the current situation worsened.

Overall, mood declines were observed across all social groups, suggesting that recent mood improvements were temporary. “Sentiment volatility is likely to continue, reflecting uncertainty about both global factors and the outcome of the election.”

Consumer inflation expectations rose slightly. The inflation rate is expected to be 5.1 percent over a one-year horizon and 3.0 percent over a 5- to 10-year horizon. This is 0.1 percent higher than the previous month. In October, inflation eased to 7.7 percent, data showed on Thursday.

The University of Michigan’s indicator is a measure of the purchasing behavior of American consumers. It is based on a telephone survey of around 500 households. An assessment of the financial and economic situation and the corresponding expectations are queried.