Economy

Consumer sentiment ticks up in November, but 57% say high prices are eroding their living standards

Ann Arbor, Michigan • November 7, 2026 • By Press Pass USA

A shopper with a basket comparing prices in a supermarket produce aisle

Illustration: Press Pass USA

American consumers felt a little better about the economy in early November, but the cost of living still dominates their view of it. The University of Michigan's preliminary Consumer Sentiment Index rose to 51.0 in November, up from a final reading of 48.0 in October — its highest level in three months.

The reading, released Friday, beat the forecast of economists polled by Reuters, who had expected the index to hold at 48.0. "Consumer sentiment ticked up about 6% in the preliminary read," said Joanne Hsu, director of the university's Surveys of Consumers. "Modest improvements in multiple domains, including expected personal finances and business conditions, were concentrated primarily among independents."

Both parts of the index improved. The current economic conditions gauge rose to 51.0 from 46.7 in October, and the consumer expectations gauge climbed to 50.9 from 48.8.

Inflation expectations moved in the Federal Reserve's favor. Consumers now expect prices to rise 4.3% over the next year, down from 4.7% in October and the lowest reading since August. Expectations for inflation over the next five years eased to 3.4% from 3.5%.

The improvement was uneven. Sentiment rose for lower- and middle-wealth consumers, but it fell 5% for consumers with the largest stock portfolios after a turbulent stretch in the stock market. A new worry also surfaced in the survey: consumers are growing anxious about a possible bubble in artificial intelligence stocks.

"AI worries, however, were dwarfed by cost of living concerns, which continue to be at the forefront of consumers' minds across the population," Hsu said. About 57% of those surveyed volunteered, without being prompted, that high prices have eroded their living standards — the most since May, and up from 46% in February.

Despite the improvement, sentiment remains about 10% below its February level, and the index is still near some of the lowest readings in the survey's history.

The survey carries one important caveat: interviews ran from October 20 to November 2, so it closed before the midterm elections, before Thursday's sharp stock-market selloff, and before Friday's October jobs report, which showed employers adding 165,000 jobs. The final November reading, due November 20, will be the first to reflect all three.

Affordability was at the center of Tuesday's midterm elections, in which Democrats swept both chambers of Congress, and the cost of living is likely to stay at the center of the economic debate as the Federal Reserve weighs whether to raise interest rates again at its December 8–9 meeting.

Sources: Reuters, "US consumer sentiment improves in November; worries about AI bubble emerge" (Nov. 6, 2026, via syndication; full text verified); Kitco News, "Gold price trades near $4,050/oz after preliminary Consumer Sentiment rises to 51, inflation expectations ease" (Nov. 6, 2026, full text verified); University of Michigan Surveys of Consumers, preliminary November 2026 results (released Nov. 6, 2026). Event date verified: the preliminary November reading was released Friday, November 6, 2026.