Topline
Views on the U.S. economy fell to a three-year low among Americans this month as consumers expressed growing concerns about the government shutdown, according to a widely tracked survey released Friday by the University of Michigan.
Economists have warned of a divided economy in recent weeks, with high-income Americans driving consumer spending.
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Consumer sentiment—a monthly survey on Americans’ views on the economy—fell to 50.3 in November from 53.6 in October, below the historical benchmark of 100 and nearing a record low set in June 2022 (50), a reading of the University of Michigan’s study found.
A preliminary reading for November fell well below Wall Street’s projections for consumer sentiment to rise slightly to 54.2, according to FactSet.
A measurement of Americans’ views on economic conditions fell 6.3 points—a nearly 11% decline—to a record 52.3, as consumers expect prices to rise at a 3.6% annual rate over the next five to 10 years, a three-month low.
Why Are Americans Pessimistic About The Economy?
Joanne Hsu, the survey’s director, said in a statement that consumers are withstanding “pressure” on their personal finances from “multiple directions,” as Americans anticipate the job market to continue deteriorating and “expect to be personally affected.” Consumers’ expectations about losing their jobs fell to the highest reading since March, Hsu said. She noted that, as a government shutdown continues “dragging on,” consumers are “expressing worries about potential negative consequences for the economy.” The survey previously said there was “little evidence” the shutdown had impacted economic views.
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