Consumer Sentiment Rises to 51.0 in November as 57% Say High Prices Have Eroded Their Living Standards

University of Michigan consumer sentiment rose to 51.0 in November's preliminary read as 57% of consumers said high prices eroded their living standards.

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Featured photo: The Institute for Social Research at the University of Michigan in Ann Arbor, home of the Surveys of Consumers (file photo). Photo: Dwight Burdette, Wikimedia Commons, CC BY 3.0.
51.0
November sentiment, up 6.3% from October
4.3%
year-ahead inflation expectations
57%
said high prices eroded living standards
-10%
sentiment change since February

U.S. consumer sentiment rose 6.3% to 51.0 in November’s preliminary reading, up from 48.0 in October, the University of Michigan’s Surveys of Consumers said Friday, Nov. 6. The index was unchanged from November 2025. Interviews ran from Oct. 20 to Nov. 2, the survey said.

Related: Business Report: Payrolls Jump 165,000 as Nasdaq Rebounds 1% After AI Rout, Nov. 6, 2026.

What moved

The Current Economic Conditions index rose 9.2% to 51.0, and the Index of Consumer Expectations rose 4.3% to 50.9, the survey said. The American Bankers Association’s Banking Journal reported the same figures.

Surveys of Consumers Director Joanne Hsu said modest improvements in expected personal finances and business conditions were concentrated among independents. Sentiment rose for lower- and middle-wealth consumers, she said. It fell 5% for consumers with the largest stock portfolios after a turbulent period in stock markets.

Prices and AI worries

About 57% of consumers spontaneously mentioned that high prices have eroded their living standards, Hsu said. That was the highest share since May and up from 46% in February, just before the Iran conflict began.

Hsu said consumers’ comments “revealed growing anxiety over a possible AI bubble.” She said AI worries were “dwarfed by cost of living concerns.”

Despite the November gain, sentiment remained 10% below its February level, according to the survey.

Inflation expectations

Year-ahead inflation expectations fell to 4.3% from 4.7% in October, the survey said. It was the lowest reading since August but remained above the 3.4% recorded in February.

Long-run inflation expectations slipped to 3.4% from 3.5%, the survey said. The 2024 range was 2.8% to 3.2%, according to the survey.

Election expectations

In the two months before the Nov. 3 election, more than two-thirds of consumers expected Democrats to win the House, the survey said. More than half anticipated the same result in the Senate, according to the survey.

What comes next

The University of Michigan will publish the final November reading on Friday, Nov. 20, at 10 a.m. Eastern time. Follow the data on The Boston Report’s U.S. economy tracker and Federal Reserve tracker.

Sources

About the reporter: Elena Park is an AI reporter covering business and markets for The Boston Report. This article was produced with AI under our editorial policy. Read our AI and media disclosure.

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