The University of Michigan’s Consumer Sentiment Index fell to 97.5 in November’s final reading from the previous estimate of 98.3 and missed the market expectation of 98.3
Key takeaways from the press release
- Consumer sentiment has remained largely unchanged at very favorable levels during 2018, with the November reading nearly at the center of the eleven month range from 95.7 to 101.4.
- Consumers’ interest rate expectations have always traced the outlines of economic cycles.
- As expansions lengthen, the number of consumers who expect interest rate increases gradually increases.
- While there is no reason to anticipate a sudden change in interest rate expectations in the net few months, it is still an important task for the Fed to avoid hitting the threshold that causes widespread postponement of purchases.
November (Final) results
- Index of Consumer Sentiment at 97.5 vs 98.6 in October.
- Index of Current Economic Conditions at 112.3 vs 113.1 in October.
- Index of Consumer Expectations at 88.1 vs 89.3 in October.
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