US consumer sentiment improves in November; worries about AI bubble emerge
SPY•The University of Michigan’s Consumer Sentiment Index rose to 51.0 in early November from 48.0 in October, beating economists’ forecast of no change. One-year inflation expectations fell to 4.3% from 4.7%, while consumers expressed growing anxiety about a possible AI bubble.
1. Sentiment rises
The University of Michigan’s Consumer Sentiment Index rose to 51.0 in early November from a final October reading of 48.0. Economists polled had forecast it would remain unchanged. The improvement was concentrated among respondents identifying as Independents; the survey was conducted from October 20 to November 2.
2. Inflation and AI concerns
One-year inflation expectations fell to 4.3% from 4.7%, and five-year expectations dipped to 3.4% from 3.5%. Sentiment fell 5% among respondents with the largest stock portfolios. Survey director Joanne Hsu said consumers’ comments revealed growing anxiety over a possible AI bubble.
