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Last Update: 11-Nov-11 10:44 ET
Sentiment Improves to its Highest Level Since June
The University of Michigan Consumer Sentiment index increased from 60.9 in October to 64.2 in the preliminary reading for November. This is the strongest reading since June. The Briefing.com consensus expected the Sentiment Index to increase to 61.3.
Both future expectations and current conditions improved in November. The Expectations Index strengthened from 51.8 in October to 56.2. The Current Conditions Index increased from 75.1 to 76.6.
The increase in sentiment in November most likely stems from the strong growth in stock prices over the past few weeks. Other areas that tend to produce notable effects on consumer attitudes -- employment, oil prices, and media reports -- were essentially unchanged over the last month.
The November increase in sentiment does not necessarily mean that consumption is headed for stronger growth. Consumption is highly reliant upon income growth and fluctuates with the employment situation, not sentiment.
Both future expectations and current conditions improved in November. The Expectations Index strengthened from 51.8 in October to 56.2. The Current Conditions Index increased from 75.1 to 76.6.
The increase in sentiment in November most likely stems from the strong growth in stock prices over the past few weeks. Other areas that tend to produce notable effects on consumer attitudes -- employment, oil prices, and media reports -- were essentially unchanged over the last month.
The November increase in sentiment does not necessarily mean that consumption is headed for stronger growth. Consumption is highly reliant upon income growth and fluctuates with the employment situation, not sentiment.
