{"id":2105676,"date":"2023-11-22T11:27:01","date_gmt":"2023-11-22T16:27:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gloom-consumer-sentiment-falls-and-inflation-expectations-rise\/"},"modified":"2023-11-22T11:30:52","modified_gmt":"2023-11-22T16:30:52","slug":"gloom-consumer-sentiment-falls-and-inflation-expectations-rise","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gloom-consumer-sentiment-falls-and-inflation-expectations-rise\/","title":{"rendered":"Gloom: Consumer sentiment falls and inflation expectations rise"},"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\">16<\/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%2Fgloom-consumer-sentiment-falls-and-inflation-expectations-rise%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=2105676&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--><h2>Consumer Sentiment Drops in November, Inflation Expectations Rise<\/h2>\n<p>The University of Michigan Consumer Sentiment Index\u2063 took a hit in November, signaling that consumers \u2064are feeling less optimistic about \u2062the\u200b economy. The \u200dindex dropped to\u200b 61.3, down from nearly 64 in October, according \u200dto\u2063 the latest \u200bdata released on Wednesday.<\/p>\n<h3>Existing\u2062 Home Sales Plummet \u2062Due to High \u2063Mortgage Rates<\/h3>\n<p>Despite the decline from the previous\u200d month, the index has seen an increase of eight\u2064 percentage points compared to the same\u2062 time last year. While it slightly exceeded economists&#8217; consensus estimates of just over\u2063 60,\u2064 the November reading reflects a\u2064 mix of positive and negative factors, according to survey director Joanne \u2063Hsu. Current assessments \u2064and expectations of personal finances improved, but there was a \u2063notable deterioration in expected business conditions.<\/p>\n<p>Meanwhile,\u200c there is a concerning rise in \u200binflation expectations, which poses a challenge \u2062for the Federal Reserve. Despite the central bank&#8217;s efforts to curb inflation through \u2063aggressive \u2062interest rate\u200c hikes,\u2063 year-ahead \u2063inflation \u200bexpectations climbed to 4.5% in November, up from 4.2% the\u2063 previous month. This is the highest reading since \u2064April of this\u2063 year. \u200bLong-run inflation\u200b expectations also increased from 3.0% to 3.2% in \u2062November, reaching levels not seen since 2011.<\/p>\n<p>Survey director Joanne Hsu noted that these expectations have risen despite the ongoing slowdown in inflation. Consumers seem worried \u200dthat the softening \u200bof inflation could \u2063reverse in the coming months and years.<\/p>\n<p>Although\u2063 inflation has\u2063 decreased \u2063over the past \u2064year,\u200b the \u2062most <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gloom-consumer-sentiment-falls-and-inflation-expectations-rise\/\" title=\"Gloom: Consumer sentiment falls and inflation expectations rise\">recent consumer price index\u2064 data revealed<\/a> a headline\u200c inflation rate of \u200c3.2% for \u2064the \u200cyear ending in October.<\/p>\n<p>The Federal Reserve has been steadily\u2062 raising interest rates since March\u200d 2022, but it \u200bseems \u200bthey may have reached their peak during this \u2062tightening cycle, with rates \u2064currently at 5.25% to 5.50%. However, Fed Chairman Jerome Powell has not\u2063 ruled out the possibility of \u200dfurther rate hikes \u200dif inflation proves to be more\u200c persistent than \u200banticipated.<\/p>\n<p>Despite the \u2064impact of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/janet-yellen-as-congress-for-billions-to-help-other-countries-debt-relief-climate-change-initiatives\/\" title=\"Janet Yellen As Congress For Billions To Help Other Countries\u2019 \u2018Debt Relief,\u2019 \u2018Climate Change\u2019 Initiatives\">higher interest rates<\/a>, the broader \u2063economy has shown surprising resilience and has experienced stronger growth than expected. Gross domestic product (GDP) growth, \u2063a measure of the\u2064 overall \u200deconomy, surged\u200c to a red-hot 4.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge\/\" title=\"September inflation remains stable at 3.4% in Fed's preferred measure.\">9% seasonally adjusted annual \u2063rate<\/a> \u2064in the third quarter of this year, up\u200d from \u2062a \u200bstill robust \u200d2.1% in \u200cthe\u200d previous quarter.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\">Click\u200d here<\/a> to read\u2062 more from\u2064 The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> \u200b How has the rise \u200bin inflation expectations\u2062 contributed to the decline in consumer sentiment?<\/h2>\n<p><span>  \u200cA decline\u200b in consumer sentiment. This \u2063drop suggests that consumers \u200bare becoming more cautious about the state of the economy.<\/p>\n<p>One\u2064 of the \u2064factors contributing to this decline in consumer sentiment is the rise in \u200cinflation expectations. As\u2064 prices continue to increase, consumers are becoming more concerned about the impact on their purchasing power\u200b and overall financial \u2062situation.<\/p>\n<p>Additionally, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/existing-home-sales-soar-as-buyers-panic-ahead-of-rate-hikes\/\" title=\"Existing Home Sales Soar as Buyers Panic Ahead of Rate Hikes\">existing home sales<\/a> have also \u2062taken\u2064 a hit in November. High mortgage rates have made it more challenging for potential\u200b homebuyers to enter the \u200dmarket, leading \u200cto a decrease in sales. This further adds to the\u2064 concerns \u2064surrounding \u200bthe economic outlook.<\/p>\n<p>Despite the drop in consumer sentiment and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-8-despite-other-signs-of-a-warming-housing-market\/\" title=\"Housing starts drop 8% despite positive housing market indicators.\">existing home\u2062 sales<\/a>, it is important to note that the index \u2063has still \u2064shown a significant improvement compared \u200cto the same\u2062 time last \u2064year. This suggests that while consumers may be\u200d feeling less optimistic now, \u200boverall sentiment has improved over the past year.<\/p>\n<p>The \u200bNovember reading of the University of Michigan Consumer Sentiment Index serves as a reminder of the fragile nature\u200b of consumer\u200c confidence. It \u200bhighlights the importance of \u2064closely monitoring economic \u2064indicators and implementing policies that support \u200bconsumer spending and confidence.<\/p>\n<p>Additionally, policymakers should also address the rising inflation\u2063 expectations and the\u2063 impact \u2063it may have on consumer sentiment. Implementing measures to mitigate inflationary pressures and\u2063 ensuring that consumers have\u2064 access to \u200daffordable goods and services will be crucial in boosting confidence and \u2064supporting economic growth.<\/p>\n<p>In conclusion, the drop in consumer sentiment in November reflects \u2062a less optimistic outlook among consumers. The rise \u2062in inflation expectations and the decline\u200c in \u2064existing home sales have contributed to this decline. However, it is\u2062 important to note that the index has still\u200c shown\u200c improvement compared to last year. Policymakers \u200bmust take \u2062action to \u200baddress these \u200bconcerns and support consumer confidence to ensure\u200c sustained\u2064 economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumer sentiment fell in November and expectations for inflation rose, a sign that consumers are not feeling great about the economy. The University of Michigan Consumer Sentiment Index plunged to 61.3 in November, down from nearly 64 in October, according to final numbers released Wednesday. EXISTING HOME SALES FALL TO LOWEST LEVEL SINCE 2010 THANKS<\/p>\n","protected":false},"author":1,"featured_media":2105677,"comment_status":"open","ping_status":"closed","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":[538],"tags":[],"class_list":["post-2105676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"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\/2105676","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=2105676"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2105676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2105677"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2105676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2105676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2105676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}