Consumer sentiment in the U.S. improved by substantially less than initially estimated in the month of November, according to a report released by Thomson Reuters and the University of Michigan on Wednesday.
The report showed that the consumer sentiment index for November came in at 82.7, down sharply from the preliminary reading of 84.9.
With the downward revision, the index is well below economist estimates for 84.0 and is now only just above the final October reading of 82.6.
Peter Boockvar, managing director at Miller Tabak, said, "Bottom line, the November confidence readings this year came during a volatile time where we had a Presidential election and the fiscal verbal jabbing that has followed and the nasty hurricane."
"This said, confidence nationally held at its October, multi year high level, apparently immune to the events above," he added.
The downward revision to the headline index came as the revised data showed that consumer expectations actually deteriorated during the month.
The report showed that the expectations index for November was downwardly revised to 77.6 from 80.8 and is now below the 79.0 reported for October.
The current conditions index for November was also downwardly revised to 90.7 from 91.3, although it remains above the October reading of 88.1.
According to Reuters, survey director Richard Curtin said, "The late-month retreat was accompanied by more economic uncertainty about future federal taxes and spending programs and the inability of the political parties to reach a settlement."
The report also showed that one-year inflation expectations came in at 3.1 percent in November, unchanged from the previous month. The 5-to-10-year inflation outlook was at 2.8 percent compared to 2.7 percent a month ago.
by RTT Staff Writer
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