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Economic Report: U.S. consumer sentiment hits pandemic low as inflation expectations hit 13-year high

The numbers: The University of Michigan’s gauge of consumer sentiment slid to 66.8 in November, it’s lowest level in a decade, from a final October reading of 71.7.

Economists had expected a reading of 72, according to a Wall Street Journal poll.

Key details: A gauge of consumer’s views of current conditions fell in November to 73.2 from 77.9 in October, while an indicator of expectations declined to 62.8 from 67.2 in October.

Household inflation expectations for the next 5 years held steady at 2.9% above its pre-pandemic level of 2.3%. Expectations for 1-year inflation rose to 4.9%, it’s highest level since the summer of 2008, from 4.8% in October.

Market reaction: Stocks held on to modest gains following the report, with the Dow Jones Industrial Average

and S&P 500 index

both edging higher Friday morning.

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