Reuter's/University Of Michigan Consumer Sentiment Slows Slightly

Consumer sentiment slowed slightly in the last half of the month but not by much, coming in at 88.8 vs 89.4 at mid-month and up from October's final reading of 86.9. The current conditions component finishes November at 102.7, well up from October's 98.3 in a reading that, in contrast to many other indicators including yesterday's consumer confidence report, points to month-to-month strength for November. The expectations component finishes November at 79.9, not much changed from October's 79.6. Inflation expectations are down, the result of lower gasoline prices with 1-year expectations at 2.8 percent, down 1 tenth from October, and 5-year expectations at 2.6 percent, down 2 tenths.

Recent History Of This Indicator:
The Reuter's/University of Michigan's consumer sentiment index has been spiking going into the holiday shopping season, at 89.4 for the preliminary November reading versus October's final reading of 86.9 and preliminary reading of 86.4. Strength was led by the current conditions component which rose a very sizable 4.7 points from final September to 103.0. This offered an early indication, and a very positive indication, on the November-versus-October comparison in consumer activity. The expectations component showed less strength and less monthly acceleration but was still respectable, at 80.6 for a 1.0 point gain from final September. All these readings are the highest they've been since 2007. Falling gasoline prices are a major factor boosting confidence. A downward trend in initial jobless also is helping.