Consumer Sentiment

Sources of Economic News and Information for Consumers

Mainstream news, other/general/unspecified news sources, and non-social media internet sources were the most frequently cited sources, at over 30% of consumers each.

https://data.sca.isr.umich.edu/fetchdoc.php?docid=75635

The least favorable readings seen in the lower-left corner came from consumers referring to their own experiences and word-of-mouth as sources of information about the economy. At the other end of the spectrum in the upper right, those citing mainstream and business news have the most favorable levels of sentiment.

https://data.sca.isr.umich.edu/fetchdoc.php?docid=75635

University of Michigan Index

Methodology

The monthly Surveys of Consumers is an ongoing nationally representative survey based on approximately 600 telephone interviews with adult men and women living in households in the coterminous United States (48 States plus the District of Columbia). The sample is designed to maximize the study of change by incorporating a rotating panel sample design in an ongoing monthly survey program. For each monthly sample, an independent cross-section sample of households is drawn. The respondents chosen in this drawing are then reinterviewed six months later. A rotating panel design results, and the total sample for any one survey is normally made up of two thirds of new respondents, and one third being interviewed for the second time.

Developments

November 2023

Consumer sentiment slipped for the fourth straight month, falling 5% in November. While current and expected personal finances both improved modestly this month, the long-run economic outlook slid 12%, in part due to growing concerns about the negative effects of high interest rates.

• Overall, lower-income consumers and younger consumers exhibited the strongest declines in sentiment.
• Sentiment of the top tercile of stock holders improved 10%, reflecting the recent strengthening in equity markets.
• Year-ahead inflation expectations inched up to 4.4%, indicating that the large increase between September’s 3.2% reading and October’s 4.2% reading was no fluke.
• Long-run inflation expectations also rose, from 3.0% last month to 3.2% this month, the highest reading since 2011.