Overview
- The University of Michigan’s Consumer Sentiment Index fell to 50.3 in early November from 53.6 in October, the weakest reading since June 2022.
- Survey director Joanne Hsu said households are increasingly worried about the shutdown’s consequences, with the decline broad-based across age, income, and political affiliation.
- The government closure has entered a second month with cuts to benefits including food stamps, widespread furloughs and unpaid work for federal employees, and flight disruptions for travelers.
- One-year inflation expectations ticked up to 4.7% in November, while five-year expectations eased to 3.6%, indicating greater near-term price concerns alongside softer long-run views.
- Economists polled by Reuters had expected the index to slip to 53.2, making the actual decline notably sharper than forecasts.