Americans are becoming gloomier about the economy with interest rates at a 22-year high and economic growth widely expected to slow.
The University of Michigan’s measure of consumer sentiment fell 5% in November, according to a preliminary reading released Friday. That was the fourth consecutive month that sentiment soured, after improving over the summer.
The drop was mostly driven by the expected effects of higher interest rates.
“Ongoing wars in Gaza and Ukraine weighed on many consumers as well,” the university’s surveys of consumers director, Joanne Hsu, said in a release.
Changes in how consumers are feeling varied greatly. Sentiment among young and lower-income US consumers declined the most in the beginning of the month, while sentiment among “the top tercile of stock holders improved 10%, reflecting the recent strengthening in equity markets,” the release said.
This story is developing and will be updated.
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