US consumer confidence looked to rise off its low point for the year to a five-month high, but is still hovering near its lowest levels in two years.
The preliminary November reading for the University of Michigan confidence survey index rose to 69.3, more than the reading of 69 expected by a poll of economists. That is up from 67.7 in October, the lowest point of 2010, but still well off the high seen in June at 76.
Expectations of inflation one year from now rose to 3%from 2.7% in October, suggesting that the Federal Reserve’s quantitative easing program was, by this measure, succeeding in raising inflation views, which could drive consumers to spend more money in the present.
Long-term inflation expectations remained steady at 2.8%. Consumers’ view of buying conditions rose from 78 in October to 79 this month.
Consumer confidence began the year on a roll, rising until June, when a stock market nose-dived, sparked by fears for the eurozone, and saw consumers’ estimation of their wealth and confidence collapse to its lowest levels since the depth of the financial crisis in late 2008.
A recent turnaround in US employment, however, has likely led a rebound in consumer attitudes. Non-farm payrolls grew by 151,000 jobs in October. It was the first monthly increase since May, though still below the levels economist say is needed to bring down the unemployment level.
