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

November Consumer Confidence Index Report

The University of Michigan has published the data for the consumer confidence index reflecting the economic trends of U.S. consumers for 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' evaluations of their financial situation, decreased by 7.5 points to 51.1 this month. This marks the largest drop recorded.

Inflation and Consumer Expectations

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

Consumer Sentiment and Spending Trends

Consumer Surveys Director Joanne Hsu mentioned, “Consumers continue to experience frustration due to persistent high prices and falling incomes,” assessing the current economic situation. Hsu emphasized that while the wealthiest consumers may continue to spend, those without stock ownership have seen their financial situation worsen.