U.S. consumer sentiment topped expectations to stay on track for its best year in nearly two decades.

The University of Michigan's consumer sentiment index fell to 98.3 in a preliminary early November reading from 98.6 in October.

Economists polled by Refinitiv expected the preliminary read to come in at 98.

Five years ago, the index was at 75.1.

"Consumer sentiment remained virtually unchanged in early November from its October reading," Richard Curtin, chief economist for the Surveys of Consumers, said in a statement.

“The unchanged data meant that the Sentiment Index remained higher thus far in 2018 (98.4) than in any prior year since 2000,” he said.

"The stability of consumer sentiment at high levels acts to mask some important underlying shifts. Income expectations have improved and consumers anticipate continued robust growth in employment, but consumers also anticipate rising inflation and higher interest rates," he said.

“Younger consumers have benefited most from more positive income trends and older consumers are more likely to complain about the erosion of their living standards due to rising prices; rising interest rates weigh heavily on younger consumers who are more likely to borrow, and older consumers are more likely to benefit from higher returns on their savings,” he said.

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