US consumer sentiment at lowest in 10 years amid high inflation

ANKARA

US consumer sentiment declined to its lowest level in a decade with rising inflation worries, according to data released by the University of Michigan on Friday.

The index of consumer sentiment declined by 4.9 points to 66.8 in November, from 71.7 in October, according to preliminary results from a survey compiled from around 500 consumers.

This marked the lowest level in consumer sentiment since November 2011.

The index of current economic conditions also fell by 4.5 points to 73.2 in November, down from 77.7 in October.

The index of consumer expectations also decreased by 5.1 points to 62.8, from 67.9, during that period.

The historically low level in consumer sentiment was "due to an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation," Richard Curtin, the chief economist with Surveys of Consumers, said in a statement.

"One-in-four consumers cited inflationary reductions in their living standards in November, with lower income and older consumers voicing the greatest impact," he added.

Curtin said reactions of consumers to surging inflation should be no surprise.