Us consumer confidence fell to a four-month low in November under the double whammy of persistent inflation and rising interest rates.

Consumer confidence fell to 100.2 in November from a revised 102.2 in October, according to data released by the Conference Board on Tuesday. The median forecast of economists in the media survey fell to 100.

The expected index, which reflects consumers' six-month outlook, fell to 75.4. Consumers' measure of the current situation fell to 137.4, the lowest level since April 2021.

"the combination of inflation and higher interest rates will continue to pose a challenge to consumer confidence and economic growth until early 2023," said Lynn Franco, senior director of economic indicators at the consultation.

The highest inflation in a generation has forced many low-income Americans to rely on credit cards and savings. Although consumers have shown great resilience so far, rising borrowing costs have made it more expensive to fund large purchases.

Consumer plans to buy homes, cars and major appliances fell in November, according to the consultation.

From$Target (TGT.US)$To$Nordstrom (JWN.US)$Retailers have been offering big discounts to clear the backlog of inventory, especially during the holiday season. But so far, because prices are still relatively high, consumers are not flocking in and spending more on necessities such as food and rent, leaving many with little money left to buy extra things.

In November, consumer expectations for the median inflation rate over the next 12 months rose to a four-month high, which Franco attributed to higher food and gasoline prices. The Federal Reserve will release its personal consumption expenditure price index and actual consumer spending data for October on Thursday.

Although consumers are optimistic about the current state of the labour market, they are less optimistic about the outlook. The proportion of consumers who think that job opportunities are "adequate" at present has risen to 45.8%. However, a larger proportion of respondents expect jobs to fall over the next six months.