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 )
