Consumer sentiment is steady and favorable, at 95.7 for the preliminary November reading and very near October’s 95.5 and the monthly average since November last year of 95.9. Inflation expectations remain low, unchanged at 2.5 percent for the year-ahead outlook though up 1 tenth to 2.4 percent for the 5-year outlook.
One in four respondents in the survey cited tariffs as an important issue for the economy, in continuing contrast to the impeachment proceedings where concern, according to the report, is “virtually non-existent”. For consumers, employment followed by the stock market are the two central factors affecting confidence and the news on both this year has been solid.
At a consensus 96.0, forecasters see slight improvement in consumer sentiment for November which ended October at 95.5 (revised from a 96.0 preliminary October score). Of note in October’s report were sharp declines in inflation expectations.