Key facts
- The University of Michigan's Consumer Sentiment Index rose to 51.0 in early November from 48.0 in October.
- Economists polled by Reuters had forecast the index unchanged at 48.0.
- The improvement was concentrated among respondents identifying as Independents, the survey said.
- Joanne Hsu said sentiment fell 5% for consumers with the largest stock portfolios.
- The survey's one-year inflation expectation fell to 4.3% from 4.7% in October.
US consumer sentiment improved in early November, with the University of Michigan's Surveys of Consumers reporting on November 6 that its Consumer Sentiment Index rose to 51.0 from a final reading of 48.0 in October. Economists polled by Reuters had forecast the index unchanged at 48.0.
The improvement was concentrated among respondents identifying as Independents, according to the survey, which was conducted between October 20 and November 2.
Joanne Hsu, director of the Surveys of Consumers, said sentiment lifted for lower- and middle-wealth consumers but fell 5% for those with the largest stock portfolios after a relatively turbulent period in stock markets. Hsu said consumers' comments revealed growing anxiety over a possible artificial intelligence bubble.
The survey's measure of consumer expectations for inflation over the next year fell to 4.3% from 4.7% in the prior month. Expectations for inflation over the next five years dipped to 3.4% from 3.5% in October.
The report said concerns over the higher cost of living remained. It also said anger over inflation stemming from tariffs on imports and the US-Israeli war resulted in President Donald Trump's Republican Party losing control of Congress to Democrats in the midterm elections on Tuesday.