November final sentiment index falls to 2-year low

NEW YORK (Reuters) - Consumer sentiment fell in November to its lowest in two years as Americans fretted over mounting job losses and rising prices of basic goods and services, a survey released on Wednesday showed.

The Reuters/University of Michigan Surveys of Consumers said its final November figure for the consumer sentiment index was 76.1, above the median forecast of 75.0, but below the final October reading of 80.9.

The report said 90 percent of consumers surveyed this month cited "unfavorable economic developments" as the main reason for their general pessimism.

"It's a little better than expected, but it doesn't change the downtrend in the Michigan numbers," said Meg Browne, senior currency strategist at Brown Brothers Harriman.

"The data points to slowing growth in the U.S. economy and the big issue is what's the Federal Reserve going to do about it. Overall this is hardly a market mover," she added.

The data also suggested that consumer spending over the holiday period was likely to decline 4.0 percent to its lowest in five years, the survey said, with younger shoppers and those with lower income likely to hold off spending.

Buying plans for homes, vehicles, and large household durables each fell in this month's survey. Vehicle buying plans were the lowest since 1991, with the exception of one month, the report said, with consumers citing concerns about high gas prices.

U.S. Treasury prices and the dollar showed little reaction to the consumer sentiment survey, while U.S. equities extended their losses.

The survey's gauge of current consumer conditions slid to 91.5 in late November, down from October's reading of 97.6.

The final reading on consumer expectations also fell, to 66.2, compared with 70.1 the previous month.

The survey's one-year inflation index was at 3.4 percent, up from 3.1 percent in October. The five-year inflation index edged up slightly to 2.9 percent in late November from 2.8 percent the previous month.

(Reporting by Gertrude Chavez-Dreyfuss, Editing by Chizu Nomiyama)