Consumer optimism buckled under the weight of escalating inflation in the early weeks of November, data from the University of Michigan’s consumer sentiment survey showed Friday.
The Index of Consumer Sentiment fell to 66.8 from 71.7 at the end of October, the lowest read in over a decade. Economists had expected a slight improvement in the index.
“Consumer sentiment fell in early November to its lowest level in a decade due to an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation,” said Richard Curtin, the survey’s chief economist.
The measure of current conditions fell to 73.2 from 77.7. The measure of expected future conditions also declined significantly,