Michigan Survey Interviews Concluded Before October CPI

Michigan report highlights:

• Consumer sentiment fell about 9% below October, erasing about half of the gains that had been recorded since the historic low in June.
• All components of the index declined from last month, but buying conditions for durables, which had markedly improved last month, decreased most sharply in November.
• Declines in sentiment were observed across the distribution of age, education, income, geography, and political affiliation
• Long run inflation expectations, currently at 3.0%, have remained in the narrow (albeit elevated) 2.9-3.1% range for 15 of the last 16 months.

For prelim data, interviews begin October 26th and end November 9th (interviews extend to November 20th for the final reading) so these inflation expectations will not have captured yesterday's lower-than-expected CPI.