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People walk across a street in Washington, DC, the United States, Nov. 4, 2022. (Xinhua/Liu Jie)
Terms for purchasing durable goods, which improved significantly in October, fell 19 percent in November on the back of high interest rates as well as continued high prices.
CHICAGO, Nov. 23 (Xinhua) — The consumer sentiment index released Wednesday by the University of Michigan (UM) Consumer Survey fell to 56.8 in the November 2022 survey, down from 59.9 in October and below 67.4 in November last year.
The current index fell to 58.8, down from 65.6 in October and below 73.6 in November last year. The index of expectations fell to 55.6, down from 56.2 in October and below 63.5 in November last year.
Consumers noticed rising interest rates. Some 83 percent of consumers report it’s a bad time to buy a house, the highest proportion ever recorded. While the share blaming high prices fell from an all-time high of 73 percent in May to 58 percent, expensive interest rates were cited by 64 percent, the highest share since 1982. Additionally, 79 percent of consumers expect interest rates to rise in the next year.
A price board shows gasoline prices at a gas station in Los Angeles County, California, the United States, Oct. 3, 2022. (Photo: Zeng Hui/Xinhua)
About 16 percent of middle-income and higher-income consumers spontaneously mentioned the negative effects of falling asset prices on their personal finances. Higher-income consumers reported worse personal finances than lower-income consumers for only the second time in the survey’s history. The first time was in 2009 after the global financial crisis. In fact, for four of the five sentiment index components, lower-income consumers reported more favorable opinions than higher-income consumers.
Purchasing terms for durable goods, which improved significantly in October, fell 19 percent in November on the back of high interest rates as well as continued high prices, said UM economist Joanne Hsu, director of surveys. Long-term business conditions declined by a more modest 6 percent, while short-term business conditions and personal finances were essentially unchanged.
Consumer surveys are a rotating panel survey based on a nationally representative sample that gives every household in the same part of the United States an equal probability of being selected. Interviews are conducted throughout the month by phone. ■
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