By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — Consumer sentiment is the highest since June, while remaining at relatively low levels, according to data released Wednesday from the University of Michigan and Thomson Reuters.
A gauge of consumer sentiment hit 64.1 in the final reading for November – the highest level since June -- compared with 60.9 in October. A preliminary reading for November pegged the gauge at 64.2.
Economists polled by MarketWatch had expected a final November result of 65, with consumers somewhat cheered by lower gas prices, but concerned about stock volatility. See economic calendar.
The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the start of the most recent recession. Economists watch sentiment data to get a feel for the direction of consumer spending. A separate report from the government on Wednesday showed that personal consumption spending slowed down in October. Read more about incomes and spending.
Consumers’ views on current conditions and their expectations rose in November, according to Wednesday’s sentiment data. The current-conditions gauge rose 77.6 in November from 75.1 in October, while the expectations barometer increased to 55.4 from 51.8.
Meanwhile, inflation expectations for one year remained at 3.2%.
Ruth Mantell is a MarketWatch reporter based in Washington.
