{"id":1737814,"date":"2022-11-14T06:09:03","date_gmt":"2022-11-14T11:09:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1737814"},"modified":"2022-11-14T10:03:28","modified_gmt":"2022-11-14T15:03:28","slug":"consumer-sentiment-weakened-sharply-in-november","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/consumer-sentiment-weakened-sharply-in-november\/","title":{"rendered":"Consumer Sentiment Weakened Sharply in November"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fconsumer-sentiment-weakened-sharply-in-november%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1737814&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>The University of Michigan Survey of Consumers posted a 54.7 reading for November, down 8.7% from the previous month&#8217;s reading and well below the estimate.<\/li>\n<li>The survey noted a particular slide in views on spending for durable goods \u2014 big-ticket items such as televisions, kitchen appliances and motor vehicles. The index for that group fell 21%.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107139891\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">Shoppers are seen in a Kroger supermarket on October 14, 2022, in Atlanta, Georgia.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Elijah Nouvelage | AFP | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Higher interest rates, a potential recession and persistently high prices made consumers substantially less confident about the current state of the economy as well as where things are heading, according to a closely watched sentiment gauge released Friday.<\/p>\n<p>The <a href=\"http:\/\/www.sca.isr.umich.edu\/\" target=\"_blank\" rel=\"noopener\">University of Michigan Survey of Consumers<\/a> posted a 54.7 reading for November, down 8.7% from the previous month&#8217;s reading of 59.9. That was well off the Dow Jones estimate, which forecast the number to be little changed at 59.5.<\/p>\n<p>Along with that reading, the current economic conditions index fell 11.9% to 57.8. The index of consumer expectations, which looks at where respondents see things heading in six months, tumbled 6.2% to 52.7.<\/p>\n<p>On an annual basis, the headline index reading fell 18.8%, while the current conditions measure was off 21.5% and the future expectations measure slid 17%.<\/p>\n<\/div>\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107150451\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000272651\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107150452-16681773891668177386-26521576513-1080pnbcnews.jpg?v=1668177850&#038;w=750&#038;h=422&#038;vtcrop=y\" alt=\"Individual components of inflation have not peaked yet, says Crossmark&#039;s Victoria Fernandez\" \/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The University of Michigan release comes a day after the Bureau of Labor Statistics reported that the <a href=\"https:\/\/www.cnbc.com\/2022\/11\/10\/consumer-prices-rose-0point4percent-in-october-less-than-expected-as-inflation-eases.html\">consumer price index rose 0.4% in October<\/a>, below the 0.6% estimate. That news set off a wild rally on Wall Street, where sentiment rang high that the Federal Reserve could ease the pace of interest rate increases as inflation shows signs of leveling off.<\/p>\n<p>&#8220;For now, both inflation and higher borrowing costs are squeezing household spending,&#8221; said Jim Baird, chief investment officer at Plante Moran Financial Advisors. &#8220;For low-income households in particular, higher prices for essentials limit discretionary spending, crimp savings, and contribute to higher credit card debt.&#8221;<\/p>\n<p>The survey noted a particular slide in views on spending for durable goods \u2014 big-ticket items such as televisions, kitchen appliances and motor vehicles. The index for that group fell 21% as consumers were wary of rising borrowing rates and elevated prices.<\/p>\n<p>Durable goods purchases have been on the decline since mid-2021, falling the past two quarters after exploding in the early days of the Covid pandemic.<\/p>\n<p>&#8220;Better news on October inflation didn&#8217;t come in time to provide a boost to sentiment, which declined unexpectedly,&#8221; Baird added. &#8220;The economy may not be in recession, but for households struggling under the weight of higher prices, it certainly feels like it for many.&#8221;<\/p>\n<p>Inflation expectations edged higher in the month despite October&#8217;s CPI reading, which showed that year-over-year prices rose 7.7%, compared to 8.2% the previous month.<\/p>\n<p>The one-year inflation outlook rose to 5.1%, the highest level since July, while the five-year gauge rose to 3%, the highest since June. Those readings have remained in a tight range for most of the year, starting 2022 respectively at 4.9% and 3.1%.<\/p>\n<p>But those are high by historic terms and come as the Fed has <a href=\"https:\/\/www.cnbc.com\/2022\/11\/02\/fed-hikes-by-another-three-quarters-of-a-point-taking-rates-to-the-highest-level-since-january-2008.html\">boosted its benchmark interest rate<\/a> by 3.75 percentage points since March. Friday&#8217;s survey shows consumers, whose spending comprises 68% of U.S. GDP, are wary heading into the pivotal holiday shopping season.<\/p>\n<p>&#8220;Consumers managed to hold their heads above water earlier this year when gasoline prices were peaking at well above $5 per gallon,&#8221; wrote Paul Ashworth, chief North America economist at Capital Economics. &#8220;But it will be harder for them to shrug off high interest rates given that the household saving rate is already at an unusually low level.&#8221;<\/p>\n<p>The sentiment index reached its historic low in June as worries accelerate that the U.S. already was in recession or heading for one. GDP rose at <a href=\"https:\/\/www.cnbc.com\/2022\/10\/27\/us-gdp-accelerated-at-2point6percent-pace-in-q3-better-than-expected-as-growth-turns-positive.html\">a 2.6% annualized pace<\/a> for the third quarter, helping to assuage some anxiety over a contraction after the first two quarters saw negative readings, but many economists still expect the U.S. to hit a recession in 2023.<\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/4db8932b7ac3e84e3f64.svg\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The University of Michigan Survey of Consumers posted a 54.7 reading for November, down 8.7% from the previous month&#8217;s reading<\/p>\n","protected":false},"author":1,"featured_media":1737817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1737814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1737814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1737814"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1737814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1737817"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1737814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1737814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1737814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}