CHICAGO, Nov. 22 (Xinhua) -- The Consumer Sentiment Index released Wednesday by the University of Michigan (UM) Surveys of Consumers fell to 61.3 in the November 2023 survey, down from 63.8 in October and above last November's 56.7.
The Current Index fell to 68.3, down from 70.6 in October and above last November's 58.7. The Expectations Index fell to 56.8, down from 59.3 in October and above last November's 55.5.
This was the fourth month in a row for the decline of UM consumer sentiment index.
Assessments of personal finances rose 6 percent, and were 9 percent more favorable than a year ago, primarily on the basis of easing price pressures. For those with the top tercile of stock holdings, personal finances improved a notably steep 22 percent in November, reflecting recent strengthening in equity markets.
Consumers' expectations of future personal finances rose about 5 percent from October, and were equal to the reading from a year ago. Consumers took note of the continued slowdown in inflation; the share of consumers blaming high prices for eroding their living standards fell from 47 percent in October to 40 percent in November.
Home-buying conditions plummeted 23 percent in November, just one point above last November's all-time low. Buying conditions for large durable goods plunged 10 percent. For vehicles, buying conditions reached its worst since December 2022. High interest rates were a major factor for all three types of purchases.
About 34 percent of consumers spontaneously blamed high interest rates or tight credit for poor buying conditions for vehicles, the highest share on record. Likewise, the share of consumers blaming interest rate factors for poor home and car buying conditions was at its highest since the early 1980s.
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Given that 55 percent of consumers expected interest rates to continue rising in the year ahead with an additional 32 percent expecting rates to remain unchanged, these concerns were unlikely to abate anytime soon.
"The current mood reflects a balance of factors, some of which improved while others worsened this month," said chief economist Joanne Hsu, director of the surveys. "Consumers observed easing inflation and gas prices, which gave them an increased sense of security over their personal finances.
"However, they are not confident that positive developments with inflation will continue. With considerable uncertainty amid wars in the Middle East and Ukraine, as well as a U.S. election less than a year from now, consumers are concerned about the various ways the economy could take a turn for the worse," Hsu added.
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.