Shutdown Jitters Slam Confidence: Consumer Mood Sinks Near Record Low

With input from CNBC, CNN, Bloomberg, and Forbes.

Americans are feeling lousy about the economy again — and the record-long government shutdown isn’t helping.

The University of Michigan’s consumer sentiment index fell to 50.3 in November, down 6.2% from October’s 53.6 and about 30% lower than a year ago. That’s the weakest reading in more than three years and just a hair above the all-time low set in June 2022.

“Consumers are now expressing worries about potential negative consequences for the economy,” said survey director Joanne Hsu, noting the slump cut across age, income, and party lines.

Under the hood

• Current conditions: 52.3, down nearly 11% from last month; -18.2% year over year.

• Expectations: 49.0, off 2.6% on the month; -36.3% versus a year ago.

• Inflation views: One-year expectations ticked up to 4.7%, while the 5-to-10-year outlook eased to 3.6% (-0.3 ppt).

With the shutdown dragging on past a month, official economic reports are largely on ice — amplifying worry. (The monthly jobs report, for instance, didn’t arrive again.) Households are also feeling tighter finances, from higher prices to a softer job market and rising layoff headlines.

One twist: households with the largest stock holdings actually saw sentiment improve 11%, likely helped by markets hovering near highs even as the broader mood deteriorated.

The shutdown has become a confidence killer. Until Washington flips the lights back on — and data flow normalizes — consumers are bracing for tougher times, and they’re telling survey takers exactly that.