Consumer Sentiment Hits Lowest Since 2022 Amid Shutdown Worries, Survey Shows

12:57 PM EST, 11/07/2025 (MT Newswires) -- US consumer sentiment fell to the weakest level in more than three years amid concerns about the government shutdown's impact on the economy, preliminary results from a University of Michigan survey showed Friday.

The main sentiment index dropped for a fourth consecutive month, to 50.3 in November from 53.6 in October. That's the lowest reading since June 2022. The consensus was for a 53 reading in a poll compiled by Bloomberg.

"With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy," Surveys of Consumers Director Joanne Hsu said. "This month's decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation."

The government shutdown started Oct. 1 after US lawmakers failed to agree on a key spending bill. Now in its 38th day, it is the longest ever and has furloughed some federal employees and delayed key economic data, including Friday's nonfarm payrolls report.

The shutdown could cost the US economy as much as $14 billion by the end of 2026 if it stretches to eight weeks, based on estimates released last week by the Congressional Budget Office.

The gauge for current economic conditions declined nearly 11% month over month to 52.3 in November, its fourth consecutive month of decline. The expectations measure fell for a fifth straight month, to 49 from 50.3, the survey showed.

"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," Hsu said.

Year-ahead inflation expectations edged up to 4.7% this month from 4.6% in October, while the long-run outlook dipped to 3.6% from 3.9%, the survey showed.

US consumer prices grew less than expected in September, while core inflation surprisingly ticked down, the Bureau of Labor Statistics reported late last month. The agency originally planned to release the September consumer price index report on Oct. 15, but rescheduled it due to the ongoing government shutdown.

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