U.S. Consumer Confidence Plummets to Near-Record Low Amid Government Shutdown
The University of Michigan's Index of Consumer Sentiment tumbled to 50.3 in early November, marking a 6.2% decline from October and a staggering 30% drop year-over-year. This reading now sits below 2008 financial crisis levels, barely edging out the all-time low recorded in the survey's 45-year history.
Economists had anticipated a softer downturn to 53.0, making the actual figures particularly jarring. Current conditions cratered 11% monthly to 52.3—the lowest since the index's 1951 inception—while future expectations slid to 49.0. The pervasive gloom crosses demographic lines, with Survey Director Joanne Hsu noting even record stock market highs couldn't offset shutdown anxieties.
Federal programs face mounting strain as the impasse enters its second month. The mood echoes June 2022's inflation crisis, with Americans increasingly concerned about cascading economic damage from the political deadlock.
