A survey on U.S. consumer sentiment rose to 95.7 this month from 95.5 in October, the University of Michigan said Friday.
As per the University of Michigan, a degree of consumers’ opinions on current conditions fell to 110.9 in November from 113.2 in October, while the measure of their expectations increased to 85.9 from 84.
Economists review readings for clues about consumer spending which is considered as the backbone of the economy. As business investment has faltered consumer has gained more importance. Sentiment has surged following a steep fall in August. Low interest rates have strengthened the outlook for households economists say.
A reading of inflation expectations, the 5-to-10 year measure rose a tenth to 2.4%, at the lower end of recent range but stable. The index is closely monitored by the Federal Reserve, which shows decreasing consumer assumptions of dropping inflation as a signal of a weak economic outlook.
As consumers have become smarter they don’t want to engage in the type of reduction that causes recessions, said Richard Curtin, the surveys of consumers chief economist.
The mood of the consumer swings, due to their relative optimism, which is not that bad particularly against the range of uncertainties that the economy has faced in recent months.
Stocks DJIA, +0.02% SPX, +0.26% COMP, +0.48% closed at record highs on Friday.