Consumer Sentiment Improves After Shutdown Ends, But Remains Downbeat in November

01:09 PM EST, 11/21/2025 (MT Newswires) -- Consumer sentiment improved after the US federal government shutdown ended, but remained downbeat amid macro pressures, final survey results from the University of Michigan showed Friday.

The main sentiment index dropped for a fourth consecutive month, reaching 51 in November from 53.6 in October. That's slightly higher than the initial reading of 50.3, but still the lowest since June 2022. The consensus was for a 50.6 reading in a poll compiled by Bloomberg.

Last week, the US Congress passed a legislation to fund the federal government through the end of January, ending weeks of stalemate between Republicans and Democrats that caused the longest-ever shutdown.

"After the federal shutdown ended, sentiment lifted slightly from its mid-month reading," Surveys of Consumers Director Joanne Hsu said in statement. "However, consumers remain frustrated about the persistence of high prices and weakening incomes."

The gauge for current economic conditions slid nearly 13% sequentially to 51.1 in November, while the expectations measure edged higher to 51% from October's 50.3, the survey showed.

"This month, current personal finances and buying conditions for durables both plunged more than 10%, whereas expectations for the future improved modestly," Hsu said.

Year-ahead inflation expectations ticked down to 4.5% this month from 4.6% in October, while the five-year outlook eased to 3.4% from 3.9%.

"Despite these improvements in the future trajectory of inflation, consumers continue to report that their personal finances now are weighed down by the present state of high prices," Hsu said.

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