US consumer confidence started 2019 at well above average levels in a longer-term context, although readings were markedly lower than those which had been typical of most of the previous year. Since then, surveys have generally indicated US households maintained historically-high levels of confidence except for two short-lived plunges; one at the very start of the year and one in August.
The latest survey conducted by the University of Michigan indicates the average confidence level of US households has increased for a third consecutive month, although the improvement was very, very minor. The University’s preliminary reading from its Index of Consumer Sentiment increased from October’s final figure of 95.5 to 95.7 in November, just ahead of the consensus figure of 95.5.
The University’s Surveys of Consumers chief economist, Richard Curtin, said, “Consumers did voice a slightly more positive outlook for the economy, which was offset by a slightly less favourable outlook for their own personal finances.” Tariffs remained a topic on respondents’ minds while impeachment proceedings were irrelevant at this stage.
US Treasury yields finished higher on the day. By the close of business, 2-year Treasury yields were unchanged at 1.67% but 10-year had gained 2bps to 1.94% and 30-year yields had increased by 3bps to 2.43%.