Michigan Consumer Sentiment Rises to 51 in Preliminary November Reading

US consumer sentiment rose at the start of November, beating forecasts for a decline. The University of Michigan preliminary Index of Consumer Sentiment for November 2026 rose to 51.0, an unexpected increase, though the index is still hovering not far above historically low levels.

The preliminary November reading of 51 compares with 48 in the final October reading. Economists surveyed by The Wall Street Journal had expected a decline to 47.5, and the consensus expectation carried by investinglive was 48.0. The print beat both surveys. The consumer expectations sub-index read 50.9 against 49.5 expected, according to the investinglive data flash that first carried the release.

Still close to record lows

The rise does not change the wider picture. The Michigan sentiment index has been hovering near historical lows for much of the year, and it hit its lowest level on record, 44.8, in May, in data stretching back to the 1950s. The Wall Street Journal framed the still low level as a sign of the economic discontent that powered Democrats' broad victories in this week's elections. A reading of 51 is better than October, and better than forecasters expected, but it remains far below the levels the survey recorded in stronger years.

Joanne Hsu, director of the University of Michigan Surveys of Consumers, pointed to two pressures in consumers' own comments. "Consumers' comments revealed growing anxiety over a possible AI bubble," Hsu said. "AI worries, however, were dwarfed by cost of living concerns, which continue to be at the forefront of consumers' minds across the population."

Inflation expectations ease

Inflation expectations moved down in the preliminary release. One-year inflation expectations fell to 4.3 percent from 4.7 percent in the prior release, and five-year inflation expectations fell to 3.4 percent from 3.5 percent. investinglive noted that the Federal Reserve watches the longer-run measure as a signal of whether inflation expectations remain anchored, and that the Fed will be pleased with the dip in the five-year figure. For a central bank watching whether households expect price rises to last, a fall in the longer-run number carries more weight than the headline move.

Interviews ended before the election results

The timing of the survey matters for how the number should be read. Interviews for the preliminary reading took place from October 20 to November 2, so they wrapped up before the results of Tuesday's midterm elections were known. A final November reading, incorporating post-election interviews, will be published later this month, and it will show whether the election outcome changed how consumers feel.

The preliminary reading is based on interviews conducted over the preceding weeks and uses a smaller sample than the final reading, so the figures can be revised meaningfully in the final release. The survey moved from telephone to online interviews in 2024. Readers should treat the November figure as an early reading that the final release can move, not as the last word on consumer mood this month.