Michigan Consumer Sentiment Index Declines More Than Expected in Preliminary November Survey

10:17 AM EST, 11/07/2025 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index fell to 50.3 in November from 53.6 in October, below expectations for a smaller decrease to 53.0 in a survey compiled by Bloomberg as of 7:30 am ET.

The current conditions index decreased to 52.3 in November from 58.6 in October, while the expectations reading decreased to 49.0 from 50.3.

Michigan said that consumers are concerned about the potential effects of government shutdown on the economy. Sentiment declined among all age groups, income levels, and political affiliations. Only the confidence of consumers in the top third of stock ownership improved because of the strong stock market performance.

The interviews for this release were concluded before Tuesday's elections.

Respondents saw one-year inflation expectations at 4.7%, up from 4.6% in October, while five-year inflation expectations slowed to 3.6% from 3.9%.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

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