A
report from the University of Michigan revealed on Friday the preliminary
reading for the Reuters/Michigan index of consumer sentiment declined 6.8
percent m-o-m to 66.8 in early November. This was the lowest print since November
2011.
Economists
had expected the index would come in at 72.4 this month, up from October’s
final reading of 71.7.
According
to the report, the index of current U.S. economic conditions fell 5.8 percent
m-o-m to 73.2 in November from 77.7 in the previous month. Meanwhile, the index
of consumer expectations plunged 7.5 percent m-o-m to 62.8 this month from 67.9
in October.
Surveys
of Consumers chief economist, Richard Curtin, noted that consumer sentiment dropped
in early November to its lowest level in a decade due to an escalating
inflation rate and the growing belief among consumers that no effective
policies have yet been developed to reduce the damage from surging inflation.