US Consumer Sentiment Hits Lowest Level Since 2022 Amid Growing Concerns About Shutdown's Impact On Economy

• Consumer sentiment for November is now the second-lowest in history, according to data from the University of Michigan.
• Other measures, like the current conditions and consumer expectations indexes, also registered a decline during the month.
• However, the sentiment among consumers with the largest stock holdings showed an improvement, according to the survey.

U.S. consumer sentiment inched close to the lowest level ever amid growing concerns about the impact of the ongoing government shutdown on the country’s economy.

The monthly Index of Consumer Sentiment released by the University of Michigan on Friday showed a reading of 50.3 in November, the lowest since June 2022. Notably, the Consumer Price Index (CPI) increased 9.1% for the 12 months ended June 2022, which was the largest rise in 40 years, according to data from the Bureau of Labor Statistics (BLS).

Second Lowest In History

The consumer sentiment for November is now the second-lowest in history, according to data from the University of Michigan. According to a Dow Jones estimate compiled by MarketWatch, consumer sentiment was expected to be at 53 during the month.

“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” said survey Director Joanne Hsu.

The U.S. government shutdown is now in its 38th day.

Other Measures Also Decline

Other measures in the survey also showed a decline in November. The current conditions index fell to 52.3, down 11% from October, while the consumer expectations reading declined to 49, down 2.6%.

From the year-ago period, both the readings are down 18% and 36%, respectively.

“This month’s decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation,” Hsu added.

However, the sentiment among consumers with the largest stock holdings showed an improvement of 11%, according to the survey.

Meanwhile, U.S. equities declined in Friday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 1.13%, the Invesco QQQ Trust ETF (QQQ) fell 1.82%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.71%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘extremely bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.19% at the time of writing.

Also See: Trump Administration Seeks Immediate Halt To Court Order Requiring It To Pay Full SNAP Benefits In November: Report

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