US consumer sentiment falls to near lowest on record

"US consumer sentiment fell in November to one of the lowest levels on record as Americans' views of their personal finances soured. The final November sentiment index dropped to 51 from 53.6 in October, according to the University of Michigan. The figure was only slightly better than the preliminary figure. The current conditions gauge slid 7.5 points to a record low of 51.1."

"Consumers expect prices to rise at an annual rate of 4.5% over the next year, easing for a third month, data released Friday showed. They saw costs rising at an annual rate of 3.4% over the next five to 10 years, compared to 3.9% in October. While Americans' inflation worries have ebbed, they remain anxious about the high cost of living and job security."

"The report showed the probability of personal job loss climbed to the highest since July 2020. Continuing claims for unemployment insurance a proxy for those receiving benefits rose early this month to a four-year high, suggesting jobless Americans are finding it harder to land new jobs. The University of Michigan report touched on the growing divide between wealthier consumers and those with less income."

Consumer sentiment fell to one of its lowest levels in November as views of personal finances weakened and the current conditions gauge hit a record low. The final sentiment index dropped to 51 from 53.6 in October, and buying conditions for big-ticket items fell to the lowest on record. Short-term inflation expectations eased to 4.5% for the year ahead and long-term expectations softened to 3.4%, yet concerns about cost of living and job security persist. Personal job-loss probability increased to its highest since July 2020 and continuing unemployment claims rose to a four-year high. Wealthier households remain able to spend while non-stockholders face deteriorating finances, revealing uneven vulnerabilities across the population.

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