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US consumer sentiment improves in November; worries about AI bubble emerge

By Thomson Reuters Nov 6, 2026 | 9:30 AM

WASHINGTON, Nov 6 (Reuters) – US consumer sentiment improved in early November, though concerns over the higher cost of living ​remained and households worried about a ‌possible artificial intelligence  bubble, a survey showed on Friday.

The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index rose to 51.0 this month from ‌a ​final reading of 48.0 in ⁠October. Economists polled ⁠by Reuters had forecast the index unchanged at 48.0.

The improvement in sentiment was concentrated among respondents identifying as Independents. The survey ​was conducted between October 20 and November 2. 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.

“While sentiment lifted for lower- and middle-wealth consumers, it fell 5% for those with the largest stock portfolios in the wake ⁠of a relatively turbulent period in stock markets,” said Joanne Hsu, the director of the Surveys ⁠of Consumers. “Moreover, ‌consumers’ comments revealed growing anxiety ⁠over a possible AI bubble.”

The survey’s ​measure ‌of consumer expectations for inflation ​over the ⁠next year fell to 4.3% from 4.7% last month. Consumers’ expectations for inflation over the next five years dipped to 3.4% from 3.5% in October.

(Reporting By Lucia Mutikani; Editing by ​Chizu Nomiyama )