A key measure of American consumer confidence has fallen sharply to a level not seen in years, as a protracted federal government shutdown fuels widespread economic anxiety.
The University of Michigan’s closely watched Consumer Sentiment Index dropped to 50.3 in November, a significant decline from October’s reading of 53.6. This figure fell well below economic forecasts and marks the lowest point for the index since mid-2022, when inflation pressures were at their peak. Historical data suggests current sentiment is at a multi-decade low.
Analysts attribute the steep drop directly to the ongoing shutdown, which has now lasted over a month. The resulting paralysis in Washington has halted the release of crucial government economic data, including the monthly employment report, leaving businesses and investors to rely on private-sector estimates.
“Consumers across all demographics—regardless of age, income, or political views—are expressing heightened concern about the shutdown’s potential damage to the economy,” stated the director of the survey.
The absence of official data has spotlighted alternative reports, which paint a mixed but concerning picture. One major payroll processor reported modest private-sector job growth in October, though at a pace far slower than earlier in the year. Simultaneously, a separate report indicated a sharp, year-over-year surge in planned job cuts by U.S. employers, reaching a two-decade high for the month of October.
The bleak sentiment reading underscores a growing pessimism among households, who are facing the twin pressures of high living costs and significant debt. Critics of the current administration argue the shutdown and its economic fallout reflect a broader failure of leadership, leaving American families financially strained and increasingly disillusioned.