University of Michigan Consumer Sentiment Near Record Low
University of Michigan Consumer Sentiment fell to 50.3 in November as the government shutdown deepened, signaling rising uncertainty for markets.
KEY TAKEAWAYS
- Preliminary University of Michigan Sentiment index registered 50.3, lowest since 2022 and near the 50.0 record.
- The ongoing federal government shutdown was cited as the primary driver of the confidence decline.
- Expectations index fell sharply, signaling rising downside risk to near-term consumer spending.
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The University of Michigan Consumer Sentiment index fell to a three-year low in preliminary November 2025 results released on Nov. 7, as the federal government shutdown deepened uncertainty and pushed the survey’s expectations index lower.
Sentiment Index Declines Amid Shutdown and Inflation
The preliminary Consumer Sentiment Index for November registered at 50.3, the University of Michigan reported, marking its lowest level since 2022 and close to the all-time record low of 50.0 set in June 2022. The survey’s expectations index, which gauges consumers’ outlook for the economy, also dropped significantly, reflecting growing pessimism about future conditions.
The university said consumer sentiment fell about 6% this month, erasing roughly half the gains recorded since the historic low in June 2022. The decline was broad-based across age, income, and political affiliation groups, signaling widespread concern.
The ongoing federal government shutdown, which began in October 2025, was identified as a primary driver of the drop in confidence. Persistent inflation also weighed on sentiment, with respondents reporting continued unease about rising prices for goods and services.
The university warned that a prolonged shutdown combined with unresolved inflationary pressures is likely to further depress consumer sentiment in the near term.
