Consumer Sentiment Steady And Strong

Consumer sentiment is steady and strong at 98.3 for the preliminary November reading. This is 3 tenths over expectations though down 3 tenths from October. The current conditions component, at 113.2, is up very slightly so far in November offsetting a 1.6 point step lower for expectations which are at a still solid 88.7 that reflects a strong outlook for the labor market.

Inflation expectations are mixed with the year-ahead reading down 1 tenth to 2.8 percent but the 5-year outlook up 2 tenths to 2.6 percent. These levels have been steady all year and, for the Federal Reserve, confirm that inflation expectations remain fully anchored.

The cut-off date for today's report was Wednesday this week which includes some responses following the mid-term elections. But the report notes that these later responses showed no significant change from responses earlier in the month. The consumer sentiment report is winding up its best year since 2000 in what ultimately reflects the unusual strength of the labor market.