Washington, Nov 13 2009 November 13 - Consumer sentiment as measured by the Reuters/University of Michigan index fell in early November to 66.0, well below October's reading of 70.6 and a sharp reversal of the 71.0 figure economists had expected.

Early November's dismal confidence can be attributed to "grim financial realities faced by consumers as well as weaker economic prospects for the year ahead," said Richard Curtin, the Survey's director.
Every index and component index fell in early November. The current conditions index fell 4.1 points to 69.6 and the consumer expectations index now stands at 63.7 after dropping 4.9 points from late October.

The early November report recorded some of the worst assessments of consumers' finances in the 60-year history of the survey. A record low one-in-ten consumers reported income gains while one-in-three reported income declines, the highest proportion on record. Both the current and expected personal finance component indices plummeted 6 points to 63 and 111 respectively.

The preliminary November survey put year-ahead inflation expectations at 2.8%, down from the 2.9% reported at the end of October. Long term inflation rose to 3.1%, which is 0.2 percentage points higher than October's and last November's expectations of 2.8%.

vimombi.nshom@thomsonreuters.com /wash/wash

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