The University of Michigan’s Index of Consumer Sentiment preliminary reading for November was 50.3, well below the 53.2 expected by economists polled by LSEG.\u00a0<\/p>\n
That’s the lowest level for consumer sentiment reported by the index since a reading of 50 in June 2022, when the U.S. economy was beset by the highest level of inflation in 40 years.\u00a0<\/p>\n
“Consumer sentiment fell back about 6% this November, led by a 17% drop in current personal finances and a 11% decline in year-ahead expected business conditions,” said University of Michigan Surveys of Consumers Director Joanne Hsu said. “With the federal\u00a0government shutdown<\/a> dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy.”<\/p>\n US HOUSEHOLD DEBT HITS A NEW RECORD, NY FED FINDS<\/a><\/p>\n Consumer sentiment dipped to the second-lowest level on record in the University of Michigan’s preliminary report for November. (Stephanie Keith\/Bloomberg via Getty Images)<\/p>\n “This month’s\u00a0decline in sentiment<\/a> was widespread throughout the population, seen across age, income, and political affiliation,” Hsu said. “One key exception: consumers with the largest tercile of stock holdings posted a notable 11% increase in sentiment, supported by continued strength in stock markets.”<\/p>\n Consumers’ expectations of inflation ticked higher from 4.6% last month to 4.7% in the preliminary November report \u2013 though they remained well below the readings recorded in May following the Trump administration’s initial\u00a0tariff announcements<\/a>.<\/p>\n GOVERNMENT SHUTDOWN DELAYS OCTOBER JOBS REPORT: WHEN WILL ECONOMIC REPORTS BE RELEASED AFTER SHUTDOWN ENDS?<\/a><\/p>\n Longer-run\u00a0inflation expectations<\/a> dipped from 3.9% last month to 3.6% in November. Inflation expectations are now below the midpoint between the readings seen a year ago and the 2025 peak reading in April.<\/p>\n Inflation has trended higher in recent months as tariffs raise costs for businesses that are passed on to consumers. The September consumer price index showed inflation reached 3% for the first time since February, which is well above the\u00a0Federal Reserve’s<\/a> 2% target rate.<\/p>\n LAYOFFS IN OCTOBER HIT HIGHEST LEVEL FOR MONTH IN 22 YEARS AS COMPANIES CITE COST-CUTTING, AI<\/a><\/p>\n Fed Chair Jerome Powell has said that rate cuts will depend on data and a December cut isn’t a foregone conclusion. (Jim Watson\/AFP\/Getty Images \/ Getty Images)<\/p>\n![\"Shoppers](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/generic-costco-shoppers-store-customers.jpg\")
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