The preliminary November sentiment index dropped 3.3 points to 50.3, just above a June 2022 reading of 50 that was the weakest in University of Michigan data back to 1978.
U.S. consumer sentiment tumbled to near the lowest on record as the government shutdown weighed on the economic outlook and high prices soured views about personal finances.
The preliminary November sentiment index dropped 3.3 points to 50.3, just above a June 2022 reading of 50 that was the weakest in University of Michigan data back to 1978. The gauge was lower than all but one estimate in a Bloomberg survey of economists.
A measure of current economic conditions slumped 6.3 points to a record low of 52.3 as anxiety mounted about the impact from the government shutdown.
The drop in overall sentiment was broad across age, income and political groups, the report showed. Among Democrats and political independents, confidence slid to the lowest in data back to 1984.
While spontaneous mentions of high prices increased for a fifth month, inflation expectations eased over the longer term.
