Consumer sentiment was little changed this month with a 2.6 index point decrease from October that is within the margin of error, according to the Survey of Consumers from the University of Michigan released on Nov. 21.
“After the federal shutdown ended, sentiment lifted slightly from its mid-month reading,” stated Surveys of Consumers Director Joanne Hsu. “However, consumers remain frustrated about the persistence of high prices and weakening incomes.”
The report showed year-ahead inflation expectations slid to 4.6% this month from 4.5% last month, which marked three consecutive months of declines.
Short-run inflation expectations still remain above the 3.3% seen in January, the survey stated. Long-run inflation expectations softened from 3.9% last month to 3.4% in November. These expectations are now modestly above the 3.2% January 2025 reading.
