AFP
Optimism among American consumers fell for the fourth consecutive month, with a worsening of their expectations about inflation.
The index measured by the University of Michigan fell to 61.3 in November from 63.8 in October. The current level is still well above the 56.7 reading of a year ago.
The survey shows that consumers are more pessimistic about inflation. Year-ahead inflation expectations rose to 4.5%, the highest since April 2023. In October, the expectation was at 4.2%.
“These expectations have risen in spite of the fact that consumers have taken note of the continued slowdown in inflation,” Surveys of Consumers Director Joanne Hsu said in a statement. “Consumers appear worried that the softening of inflation could reverse in the months and years ahead.”
Annual inflation in the U.S. slowed in October to the lowest level since July and more than economists expected after gasoline prices fell. The consumer price index rose 3.2% from a year earlier and was unchanged from September, the Labor Department said on Nov. 14. Economists surveyed by Reuters expected a 3.3% annual increase and 0.1% monthly.
According to the University of Michigan survey, younger and middle-aged consumers became more pessimistic about the economy this month, while those aged 55 and older are more optimistic than in October.
Consumers’ expectations for a period of five years rose to 3.2% from 3% in October. It’s the highest reading since April 2011.
