U.S. Consumer Mood Improved but Remained Gloomy This Month

By Matt Grossman

Consumer sentiment logged an unexpected increase to begin November but is still hovering not far above historically low levels, according to the University of Michigan's monthly survey, a sign of the economic discontent that powered Democrats' broad victories in this week's elections.

The survey's preliminary November index reading landed at 51, in data published Friday, compared with 48 in the final October reading. Economists surveyed by The Wall Street Journal had expected a decline to 47.5.

Interviews for the preliminary reading took place Oct. 20 and Nov. 2, so they wrapped up before results of Tuesday's election were known. A final November reading, incorporating post-election interviews, will be published later this month.

The Michigan sentiment index has been hovering near historical lows for much of the year. It hit its lowest level on record of 44.8 in May, in data stretching back to the 1950s.

"Consumers' comments revealed growing anxiety over a possible AI bubble," said Joanne Hsu, the survey's director. "AI worries, however, were dwarfed by cost of living concerns, which continue to be at the forefront of consumers' minds across the population."

Consumers' inflation expectations moved lower. Short-term inflation expectations, which have been elevated, logged a larger decline. But longer-run inflation expectations, which ticked just slightly lower this month, have stayed relatively steady over the past year.

With inflation's having run above the Federal Reserve's 2% target for more than five years, U.S. central bankers are especially attentive to long-run inflation expectations. They fear that if consumers believe that persistently high price increases lie ahead, they will ramp up spending in the present, making inflation a self-fulfilling prophecy.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

November 06, 2026 10:36 ET (15:36 GMT)