Summary Consumer sentiment tumbled to a ten-year low in November. Sentiment has been shaken in recent months amid the more recent outbreak of COVID, dwindling stimulus and sharply higher consumer goods inflation. But the details of today’s pessimistic read on sentiment for November makes it clear that inflation is weighing on the minds of consumers.
Consumers Pinching Pennies
Consumer sentiment tumbled 4.9 points to 66.8 in early November, its lowest reading since 2011. Sentiment has been shaken in recent months amid the more recent outbreak of COVID and dwindling stimulus, but the November fallout has inflation’s name written all over it. Near-term inflation expectations inched up to 4.9%, and while longer-term (three-to-five years out) expectations stayed put at 2.9%, it appears that consumers see that the writing is on the wall as far as climbing prices in the next year or so. READ FULL ARTICLE>>