University of Michigan Consumer Sentiment Index Rises

U.S. consumer sentiment rose to a seven-month high in early November, with the University of Michigan's Consumer Sentiment Index increasing to 73.0 from 70.5 in October, surpassing economists' expectations of 71.0. The expectations index saw a notable jump to 78.5, reflecting improved personal finance outlooks and strong short-run business conditions. Despite this positive trend, the current economic conditions index declined slightly, indicating mixed signals within the data. Year-ahead inflation expectations decreased to 2.6%, the lowest since December 2020, while long-run expectations edged up to 3.1%. The survey was conducted before the recent presidential election, suggesting potential shifts in consumer sentiment may emerge in future reports. Following the release, the U.S. Dollar Index gained strength, indicating market reactions to the improved consumer sentiment.