Consumer confidence fell in November, despite slower inflation, according to figures posted by the University of Michigan Survey of Consumers.
Consumer confidence fell to 54.7 in November, down 8.7% from October’s figure of 59.9. Sentiments around so-called durable goods, pricier items like cars and appliances, fell 21% in the wake of rising costs and increased borrowing rates.
The index of consumer expectations, which gauges customer confidence about where the economy will be in six months, dropped 6.2% to 52.7.
The U.S. consumer price index rose by 0.4% in October, according to figures released on Thursday, beating forecasts that it would rise by 0.6% . The slower-than-expected inflation figure sent stocks surging on Thursday for their best day since 2020.
Markets continued to climb Friday, with the Dow Jones Industrial Average closing up 32.49 points, or 0.096%, to 33,747.86. The S&P 500 gained 36.56 points, or 0.92%, to 3,992.93, and the Nasdaq Composite climbed 209.18 points, or 1.88%, to 11,323.33.
The markets ended the week ahead, with the Dow gaining about 4% for the week, the S&P 500 up 5.9% and the Nasdaq Composite up 8%.
The new data rekindled hopes that the Federal Reserve could decrease interest rates imposed to curb inflation.
The U.S. Gross Domestic Product rose 2.6% for the third quarter, when compared to the previous year, alleviating some concerns caused by two prior consecutive quarters of negative growth.
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