The University of Michigan’s preliminary consumer sentiment index rose to 51.0 in November, significantly exceeding the consensus forecast of 48.1 and the prior month’s final reading of 48.0. The 6.3% monthly gain pushed the index to a three-month high, largely fueled by improved personal finance and business outlooks among independent voters. Despite the headline growth, 57% of participants reported that high prices continue to erode their living standards.
Inflation expectations also trended lower, with the one-year outlook cooling to 4.3% from October’s 4.7%, while long-run expectations edged down to 3.4%. Following the release, the U.S. Dollar found modest support as the data signaled resilience in household consumption. Market analysts noted that the uptick in sentiment provided a tailwind to equities already buoyed by recent post-election certainty.