U.S. consumer sentiment rises slightly in November

The U.S. consumer sentiment rose slightly in the month of November. The University of Michigan index of consumer confidence rose a bit to 96.8, though it remains well-below its pre-trade war high of 101.4, reached in March 2018.

The wealth effect – the link between stocks and households’ assessment of their finances – has been on display throughout this cycle. If the recent equity market gains hold, there might be scope for further improvement. Consumers are feeling slightly better about their current situation than they do about the future.

“That supports our forecast for a decent finish to the year for PCE and an above-consensus call for holiday sales. But barring a swift end to the trade war, PCE in 2020 will likely moderate”, said Wells Fargo in a research report.