Investing.com – U.S. consumer sentiment increased more than expected in November to a 5-month high, bolstering optimism over the wider economy, according to a report published on Friday.
The preliminary publication of the data for November from the University of Michigan's Consumer Survey Center showed that consumer sentiment rose to 91.6 from 87.2 in the previous month. That was its highest reading since June 2016 and was slightly above this year's average of 91.1.
Analysts had forecast an increase to 87.5.
The current conditions indicator increased to 105.9 in November from the prior month’s reading of 103.2.
Analysts had expected it to advance to 103.4.
Meanwhile consumer expectations rose to 82.5 in November, from the prior reading of 76.8.
Economists had expected it to increase to 77.3.
Meanwhile, inflation expectations for the next 12 months and the five-year gauge both rose to 2.7%, from the prior 2.4%.
The increase in inflation expectations may add justification for next month's expected interest rate hike, although the University of Michigan noted that the survey had been taken before the result of the recent U.S. presidential elections.
Immediately after the report, EUR/USD was trading at 1.0872 from around 1.0873 ahead of the release of the data, GBP/USD was at 1.2621 from 1.2610 earlier, while USD/JPY was at 106.67 from 106.38 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.85, compared to 98.81 ahead of the report.
Meanwhile, U.S. stocks traded slightly lower. The Dow Jones dropped 30 points, or 0.16%, while the S&P 500 slipped 6 points, or 0.29%, while the tech-heavy Nasdaq Composite inched up 4 points, or 0.08%.
Elsewhere, in the commodities market, gold futures traded at $1,230.45 a troy ounce, compared to $1,244.85 ahead of the data, while crude oil traded at $43.65 a barrel from $43.56 earlier.