The initial estimate of the University of Michigan index of consumer confidence dropped in November from a high level, reversing the solid gains seen in October. Despite the correction from the increased levels recorded in the prior month, the print released today reflects strong consumer confidence, noted Barclays in a research report. The headline print fell from 100.7 in October to 97.8 in November.
The current conditions index dropped from 116.5 to 113.6, while the expectations measure dropped to 87.6 from 90.5, both of which are in line with the deceleration in the headline index. The inflation expectations side of the survey rebounded for the one-year-ahead measure, but remained the same for the 5-10-year-ahead measure.
“Overall, the still-strong performance of the headline index for consumer sentiment suggests that households remain confident, and this should be supportive of GDP growth”, stated Barclays.
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