U.S. Consumer Sentiment Drops on Inflation Concerns

U.S. consumer sentiment fell in early November to the lowest level in 10 years as surging inflation cut into households’ living standards, with few believing policymakers are taking sufficient steps to mitigate the accelerating inflation.

The University of Michigan’s Consumer Sentiment Index dropped to 66.8 in its preliminary November reading, released Friday, versus October’s final reading of 71.7.

The reading is as well the lowest since November 2011, below the Dow Jones estimate of 72.5 and far short of the median estimate among economists of 72.4 in a Reuters’ poll, representing a drop of 6.8%.

The survey showed consumers expecting still higher inflation, with the 12 month forecast nudging up to 4.9%.