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U.S. Consumer Sentiment Drops to Three-Year Low as Record Shutdown Weighs on Outlook

Survey responses point to the record shutdown weighing on finances more than stock-market gains help.

Overview

  • The University of Michigan index fell to 50.3 in early November from 53.6 in October, missing forecasts and marking the weakest reading since June 2022.
  • The survey’s current-conditions gauge hit a record low at 52.3 and the expectations measure slipped to 49.0, signaling growing caution about the economic outlook.
  • Short-term inflation expectations edged up to 4.7% while five-year expectations eased to 3.6%, a mix policymakers watch closely.
  • Sentiment declines were broad across ages, incomes and political groups, with an 11% improvement only among households holding the largest stock portfolios.
  • The shutdown—now the longest on record—has brought furloughs, suspended benefits such as food assistance, airport delays and a freeze in federal data, raising risks to spending and clouding analysis.