• The final University of Michigan Consumer Sentiment Index for November fell to 50.3, marking the second-lowest reading ever recorded
  • Current Economic Conditions hit an all-time low of 52.3 as personal finance assessments dropped 17%
  • The prolonged government shutdown emerges as primary driver of broad-based pessimism across nearly all demographic groups

American consumer sentiment deteriorated sharply in November, with the University of Michigan's final reading falling to 50.3—just above the all-time low recorded in June 2022. The index dropped approximately 6% from October's 53.6 and nearly 30% from year-ago levels, reflecting deepening economic anxiety as the federal government shutdown extends into its second month.

The Current Economic Conditions sub-index plummeted to a record low of 52.3, driven by a steep 17% decline in consumers' assessments of their personal finances. Meanwhile, the Consumer Expectations sub-index fell to 49.0, indicating growing pessimism about future business conditions. Survey respondents consistently cited the government shutdown as their primary concern, creating unprecedented uncertainty around federal services and broader economic stability.

"The breadth of this decline is what's particularly striking," noted one analyst familiar with the survey data. "We're seeing pessimism cut across age, income, and political affiliations with only one notable exception."

That exception appears to be households in the top third of stock ownership, who reported an 11% increase in confidence, likely buoyed by continued stock market resilience despite the political gridlock. This divergence highlights how asset ownership is creating a widening gap in economic perceptions among American consumers.

Inflation expectations showed mixed signals in the November data. Year-ahead inflation expectations edged up from 4.6% to 4.7%, while long-run expectations dropped from 3.9% to 3.6%, suggesting consumers see current pressures as temporary but remain wary of near-term price increases.

The sentiment collapse aligns with other economic indicators showing strain. The Conference Board's Consumer Confidence Index also recorded multi-year lows in November, reinforcing sector-wide concerns about consumer resilience. Retail executives contacted for comment expressed apprehension about holiday spending patterns but declined to speak on the record given the fluid situation.

Efforts to reach University of Michigan survey officials for additional commentary were unsuccessful Thursday morning. Market participants are closely watching the 10 a.m. ET release for any last-minute revisions or additional context that might influence trading decisions.

With no immediate resolution to the government shutdown in sight and consumer spending accounting for roughly two-thirds of U.S. economic activity, the persistent weakness in sentiment raises concerns about broader economic momentum heading into 2026. Analysts warn that without a swift resolution to the political standoff, consumer pessimism could become entrenched, potentially triggering a more significant economic slowdown.

Correction: An earlier version of this article misstated the year-ago comparison for the sentiment index. It has fallen nearly 30% from November 2024 levels.