U.S. Consumer Sentiment Below Expectations

Consumer sentiment south of the border fell in early November, though the index remained at the second-highest level of the year so far.

The University of Michigan's index of consumer attitudes fell to 97.8 in November, well below the expectations of a survey of economists, who forecast no change from the 100.7 level at the end of October.

The measure had soared to 101.1 on Oct. 13—the highest level since 2004—and has been consistently deflating since then.

One expert said that while wage gains and the overall number of consumers have been trending positively, "these favourable trends were countered by a slight rise in year-ahead inflation expectations and a growing consensus that interest rates will increase during the year ahead."

While consumer sentiment fell nearly 3% in November, it remains above the 2017 average of 96.8.

Experts also projected the new data support the forecast that personal consumption spending will rise 2.7% in 2018.

The index measures 500 consumers' attitudes on future economic prospects, in areas such as personal finances, inflation, unemployment, government policies and interest rates.