Consumer Confidence in the U.S. Dropped to Its Lowest Level in 3.5 Years

November Consumer Confidence Index Report

The University of Michigan has published data for the consumer confidence index, which reflects the economic trends of American consumers, for the month of November. According to the data, the consumer confidence index fell from 53.6 in October to 51 in November, reaching its lowest level since June 2022.

Current Economic Conditions and Expectations

The current economic conditions index, which measures Americans' assessments of their financial situation, dropped to 51.1 this month, representing a decrease of 7.5 points. This marks the largest recorded decline.

Inflation and Consumer Expectations

According to the announced data, consumers expect prices to rise by 4.5% on an annual basis over the next year. This rate is lower than the estimates from October. Additionally, costs are expected to increase at an annual rate of 3.4% over the next 5 to 10 years; this figure was set at 3.9% in October.

Consumer Sentiment and Spending Trends

Consumer Surveys Director Joanne Hsu assessed the current economic situation, stating, "Consumers continue to be frustrated by the persistence of high prices and falling incomes." Hsu emphasized that while the wealthiest consumers may continue to spend, those without stock ownership are experiencing deteriorating financial situations.