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4w ago

U.S. Consumer Sentiment Falls to 50.3, Near Record Low, During Prolonged Shutdown

Survey leaders tie the drop to the prolonged shutdown, citing rising job fears.

A shopper walks down an aisle in a supermarket in Seattle, Washington, U.S. December 10, 2024. REUTERS/David Ryder
Americans overall are feeling gloomy about the economy.
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Overview

  • The University of Michigan’s preliminary November index fell to 50.3 from 53.6 in October, the lowest since June 2022, with a final reading due Nov. 21.
  • Survey Director Joanne Hsu said the decline was broad across age, income and political groups, with one exception: consumers in the top tercile of stock holdings reported an 11% improvement.
  • The Current Economic Conditions Index slid to a record low of 52.3, while the Expectations Index dropped to 49.0.
  • One-year inflation expectations edged up to 4.7% as five-year expectations eased to 3.6%, and respondents reported growing concern about rising unemployment.
  • The record-length shutdown has cut some benefits, furloughed federal workers, reduced air traffic and paused federal data releases, with the CBO estimating a 1–2 percentage point hit to annualized Q4 GDP and $7–$14 billion in output not recovered.