US consumer sentiment drops to six-month low

Consumer sentiment in the United States declined for the fourth straight month in November, according to a closely watched survey by the University of Michigan.

The University's Consumer Sentiment Index, which asks people each month how they feel about the economy, their own finances, as well as the long-term economic outlook, dropped to a six-month low of 60.4.

This was down from 63.8 in October and well below the 63.7 expected by analysts.

The survey found that consumers' current and expected personal finances both improved over the month, but the sub-index measures the long-run economic outlook decreased, partly due to concerns about the impact of high interest rates – which currently still stand at a 22-year high.

The current economic conditions sub-index fell to 65.7 from 70.6 the month before, while the consumer expectations measures declined to 56.9 from 59.3.

Meanwhile, consumers reckon that inflation in a years' time will rise to 4.4%, up from October's 4.2% reading and September's 3.2%.

The University's Surveys of Consumers director Joanne Hsu said: "The current reading is the highest since November 2022 and remains well above the 2.3-3.0% range seen in the two years prior to the pandemic."