Economic Buzz: US consumer sentiment drops to near-record low in November

Consumer sentiment in the U.S. has deteriorated by much more than anticipated in the month of November, according to preliminary data released by the University of Michigan on Friday.

The University of Michigan said its consumer sentiment index slid to 50.3 in November after falling to 53.6 in October.

With the much bigger than expected decrease, the consumer sentiment index dropped to its lowest level since hitting a record low of 50.0 in June 2022.

The decrease by the headline index came as the current economic conditions index slumped to a record low of 52.3 in November from 58.6 in October.

The index of consumer expectations showed a more modest decrease, edging down to 49.0 in November from 50.3 percent.

The report also said year-ahead inflation expectations crept up to 4.7 percent in November from 4.6 percent in October but remain well below the readings in May in the wake of the initial announcements of major tariff changes.

Meanwhile, long-run inflation expectations fell to 3.6 percent in November from 3.9 percent in October and are below the midpoint between the readings seen a year ago and the 2025 peak reading from April.

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