U.S. consumer confidence rises, inflation expected to slow next year

US consumer confidence climbed to its highest level in seven months in November, buoyed by Americans' optimism about the future of the economy and their finances. The University of Michigan's preliminary consumer confidence index for November rose to 73, above expectations of 71. Expectations surged to 78.5, the highest since mid-2021. The optimistic outlook also reflects Americans' expectations of slower inflation. Consumers expect prices to rise 2.6 per cent next year, the lowest level since 2020. However, expectations for inflation over the next five to 10 years rose to 3.1 per cent. The survey was conducted between 22 October and 4 November. Joanne Hsu, director of the survey, said: ‘Consumers have consistently said that the future of the economy depends on who wins the presidential election. Looking ahead, the inflationary impact of the next administration's economic policies is likely to be a top concern for consumers and drive the trajectory of their confidence in the economy's performance.’ The Index of Personal Finance Expectations rose to its highest since March, in part due to an improvement in personal finances. Confidence in long-term business conditions jumped to a nearly four-year high.