Michigan sentiment index likely to have risen mildly in November

The Michigan sentiment index in the U.S. is expected to have remained in check in November. The index had dropped in October by four points to 87.2, the lowest level since October 2014. The drop in the confidence index was mainly because of a drop of six points in the expectations index, while the current conditions measure had dropped by just one point to 103.2.

The October report had mentioned that the election possibly weighed on the sentiment as just 35 percent of respondents expected good times ahead in the economy. This was the lowest proportion since November 2013. In a similar manner, there were worries that the growth might weaken, with half of all respondents expecting a downturn in the coming five years. This is the first time that has occurred in two years.

The report again noted that this was likely due to the election uncertainty. In the start of November, the election is expected to have kept the Michigan sentiment index in check. The index is expected to have risen just mildly to 87.5 in November, according to Societe Generale.