US: Consumer sentiment declined slightly in early November - UoM

Eren Sengezer FXStreet

"Consumer sentiment declined slightly in early November due to widespread losses across current and expected economic conditions," the University of Michigan noted in its Surveys of Consumers report.

Key highlights

The headline Index of Consumer Sentiment eased to 97.8 from 100.7.

The losses were quite small as the Sentiment Index remained at its second highest level since January.

Overall, the Sentiment Index has remained trendless since the start of the year, varying by less that 4.0 Index-points around its 2017 average of 96.8.

An improving labor market was spontaneously mentioned by a record number of consumers in early November, and anticipated wage gains recorded their highest two-month level in a decade.

While the expected Fed rate hikes seem to be the right preemptive action, the critical issue is whether income gains will be sufficient to outweigh rate hikes in home and vehicle purchase decisions.

Overall, the data are consistent with a 2.7% rise in personal consumption spending in 2018.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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