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

November Consumer Confidence Index Report

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

Current Economic Conditions and Expectations

The index measuring Americans' assessments of their financial situation decreased by 7.5 points this month to 51.1. This marks the largest decline recorded.

Inflation and Consumer Expectations

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

Consumer Sentiment and Spending Trends

Consumer Surveys Director Joanne Hsu stated, “Consumers continue to feel disappointed due to persistent high prices and falling incomes,” assessing the current economic situation. Hsu emphasized that the wealthiest consumers may continue spending, but those without stock ownership are facing worsening financial conditions.