Consumer sentiment rose 6.3% in November, according to preliminary University of Michigan data. Consumer confidence is among the indicators Kristin Dziczek of the Federal Reserve Bank of Chicago will be watching in the months ahead, she said on stage at the Nov. 3 Collision Industry Conference meeting in Las Vegas.
The Index of Consumer Sentiment reached 51.0, up from 48.0 in October and level with November 2025, the survey showed. About 57% of consumers brought up on their own that high prices have cut into their living standards, compared with 46% in February.
At the same meeting, speakers from two repair businesses said their customer-pay work has increased. John Reeves of B Street Automotive, a 16-shop Midwest operator, said winning those jobs frequently depends on educating consumers.
“We’ll explain, ‘If you filed this claim and your premium goes up, and people tell us it can go up as much as 45%, and you’re paying $2,000 a year for insurance, you’re going to add $900 a year,’” Reeves said.
Cost of living remains a leading concern
In her commentary on the November results, Surveys of Consumers Director Joanne Hsu pointed to “cost of living concerns, which continue to be at the forefront of consumers’ minds” across the population.
Most of the improvement, which extended to views of future personal finances and the business climate, came from political independents, according to the survey. Sentiment improved among consumers with lower and middle levels of wealth and dropped 5% among those holding the biggest stock portfolios. The index remains 10% under its February level, which preceded the Iran conflict.
Consumers expect prices to rise 4.3% over the next year, down from 4.7% in October, the survey found. That is the lowest year-ahead figure since August and compares with 3.4% in February. Long-run inflation expectations slipped to 3.4% from 3.5%.
In an April poll of 1,500 U.S. vehicle owners by The Zebra, 45% said they would trim coverage or take a higher deductible if insurance bills climbed 10%, and 29% said they would consider dropping or pausing coverage. The poll also found that 64% intend to keep their current vehicle until repairs become too costly or difficult.
The Zebra’s findings captured what drivers said they would do and did not tie higher premiums directly to policies actually lapsing, insurance analyst Beth Swanson said.
How the index has moved this year
The preliminary April reading of 47.6 was a record low at the time, with consumers reporting worse conditions for purchasing durable goods and vehicles and identifying high prices as their chief concern. The final May reading of 44.8 then became the lowest in records dating to 1952, AFP reported.
Interviews for the preliminary November consumer sentiment reading ran from Oct. 20 to Nov. 2. The University of Michigan will release final November data Nov. 20.
Along with consumer confidence, Dziczek said she will be watching prices for new vehicles, loan delinquencies, how the U.S.-Mexico-Canada Agreement is renegotiated, and how the consumer price index moves on insurance and vehicle repair.
Lisa McArdle