Consumer sentiment in the United States showed a modest improvement in November, as indicated by revised statistics from the University of Michigan released on Friday.
The University of Michigan revised the November consumer sentiment index to 71.8, down from the initial estimate of 73.0. This downward adjustment caught economists off guard, as they had anticipated an upward revision to 73.7. However, the index remains higher than the final October figure of 70.5.
Despite the unexpected revision, the consumer sentiment index still attains its highest position since reaching 77.2 in April.
"Post-election interviews revealed a 1.3-point dip from pre-election figures, which tempered the earlier gains seen this month," stated Joanne Hsu, Director of the Surveys of Consumers. She further noted, "The expectations index soared for Republicans while it declined for Democrats, reflecting their differing perspectives on the potential economic impact of Trump's policies."
The report indicated that the index of consumer expectations increased to 76.9 in November from 74.1 in October, while the index of current economic conditions slightly decreased to 63.9 from 64.9 over the same period.
Regarding inflation expectations, the University of Michigan reported that short-term inflation expectations slightly declined to 2.6 percent in November from 2.7 percent in October, marking the lowest point since December 2020. Conversely, long-term inflation expectations rose to 3.2 percent in November from 3.0 percent a month earlier, with an accompanying rise in uncertainty about future inflation trends.