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The University of Michigan’s consumer sentiment decreased to 77 in November from 81.8 in October, a preliminary estimate showed. It is the lowest reading since August as consumers judged future economic prospects less favorably, while their assessments of current economic conditions remained largely unchanged.

Meantime, inflation expectations for the year ahead increased to 2.8% from 2.6% and the 5-year outlook to 2.6% from 2.4%. The inflation forecast is in line with the Fed’s projections.

The outcome of the presidential election as well as the resurgence in Covid-19 infections and deaths were responsible for the early November decline. Interviews conducted following the election recorded a substantial negative shift in Republicans’ expectations and no gain among Democrats.

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