Prices still weigh on shoppers: 57% say living standards have slipped, the most since May
Michigan's survey shows year-ahead inflation expectations easing to 4.3% from 4.7%.
Consumer sentiment improved in early November but is no better than a year ago, and rising prices remain the top complaint, the University of Michigan's Surveys of Consumers reported in its preliminary November reading.
The Index of Consumer Sentiment came in at 51.0, up 6.3% from 48.0 in October and flat from November 2025. It is still down 10% from February. The survey's interviews ran from Oct. 20 to Nov. 2, before Election Day.
Prices dominate
About 57% of consumers spontaneously said high prices have eroded their living standards, the highest share since May and up from 46% in February. Joanne Hsu, director of the Surveys of Consumers, said in the release that "cost of living concerns... continue to be at the forefront of consumers' minds across the population."
Year-ahead inflation expectations eased to 4.3% from 4.7% in October, the lowest since August. They remain above the 3.4% recorded in February and above every 2024 reading. Long-run expectations slipped to 3.4% from 3.5%, still above the 2.8% to 3.2% range of 2024.
Who felt better
The survey found gains in expected personal finances and business conditions concentrated among independents. Consumers with lower and middle wealth also improved. Those with the largest stock portfolios moved the other way: their sentiment fell 5% after turbulent stock markets, and consumers voiced growing concern about a possible AI bubble.
Two sub-indexes moved up. Current economic conditions rose to 51.0 from 46.7, and the index of consumer expectations rose to 50.9 from 48.8.
What it means for workers
The Michigan survey measures how households feel, not what they spend. Its message this month is that a small lift in mood sits on top of a squeeze that has not gone away. WorkersRights.News reported Friday that pay rose 3.1% over the past year while prices rose 3.7%, and earlier that real wages fell as health costs rose.
The survey also noted that, in the two months before the election, more than two-thirds of consumers expected Democrats to win the House and more than half expected the same for the Senate. Interviews ended before the votes were counted, so the next readings will show whether the results change how people feel.
Sources
- Surveys of Consumers, preliminary November 2026 release, University of Michigan
- October jobs report coverage, WorkersRights.News
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