(Bloomberg/Nazmul Ahasan) — US consumer sentiment fell in November to one of the lowest levels on record as Americans’ views of their personal finances soured.
The final November sentiment index dropped to 51 from 53.6 in October, according to the University of Michigan. The figure was only slightly better than the preliminary figure.
The current conditions gauge slid 7.5 points to a record low of 51.1. Views of personal finances were the dimmest since 2009.
“Consumers remain frustrated about the persistence of high prices and weakening incomes,” Joanne Hsu, director of the survey, said in a statement.
Consumers expect prices to rise at an annual rate of 4.5% over the next year, easing for a third month, data released Friday showed. They saw costs rising at an annual rate of 3.4% over the next five to 10 years, compared to 3.9% in October.
While Americans’ inflation worries have ebbed, they remain anxious about the high cost of living and job security. The report showed the probability of personal job loss climbed to the highest since July 2020.
Continuing claims for unemployment insurance — a proxy for those receiving benefits — rose early this month to a four-year high, suggesting jobless Americans are finding it harder to land new jobs.
The University of Michigan report touched on the growing divide between wealthier consumers and those with less income.
“The wealthiest consumers appear equipped to continue spending, while the financial positions of non-stockholders are deteriorating,” Hsu said. “These trends indicate that aggregate economic statistics can obscure vulnerabilities within certain parts of the population.”
Consumers became slightly more downbeat about the near-term economic outlook despite the end of the longest government shutdown in US history. Buying conditions for big-ticket goods dropped to the lowest on record.
The survey was conducted from Nov. 3 to Nov. 17.
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