Consumer sentiment unexpectedly dropped in early November as Americans witnessed the presidential election and surging coronavirus infections.
The University of Michigan’s mid-month read of consumer sentiment showed a sharp decline in consumer outlook and a small dip in current conditions, indicating that consumers are increasingly wary about the near-term future.
The Index of Consumer Sentiment fell from 81.8 to 77. Economists had forecast an improvement to 82.
The gauge of current economic conditions ticked down to 85.8 from 85.9. The measure of expectations dropped nearly 8 points from 79.2 to 71.3.
“The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline,” said Richard Curtin, the chief economist of the survey.
Curtin said that interviews conducted following the election recorded a substantial negative shift in expectations of Republicans, but recorded no gain among Democrats. Curtin said it is