Chicago [US], November 24: The Consumer Sentiment Index released Wednesday by the University of Michigan (UM) Surveys of Consumers fell to 56.8 in the November 2022 survey, down from 59.9 in October and below last November's 67.4.
The Current Index fell to 58.8, down from 65.6 in October and below last November's 73.6. The Expectations Index fell to 55.6, down from 56.2 in October and below last November's 63.5.
Consumers have taken notice of rising interest rates. About 83 percent of consumers report that it is a bad time to buy a house, the highest share ever recorded. While the share blaming high prices has eased from the all-time high of 73 percent in May to 58 percent, expensive interest rates were cited by 64 percent, the highest share since 1982. In addition, 79 percent of consumers expect interest rates to rise in the year ahead.
About 16 percent of middle-income and higher-income consumers spontaneously mentioned the negative effects of declining asset prices on their personal finances. Higher-income consumers reported worse personal finances than lower-income consumers for only the second time in the survey's history. The first time was in 2009 in the wake of the Global Financial Crisis. In fact, for four of the five components of the sentiment index, lower-income consumers reported more favorable views than those with higher incomes.
Buying conditions for durables, which had markedly improved in October, fell 19 percent in November on the basis of high interest rates as well as continued high prices, said UM economist Joanne Hsu, director of the surveys. Long-term business conditions declined a more modest 6 percent, while short-term business conditions and personal finances were essentially unchanged.
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.
Source: Xinhua
