University of Michigan: Consumer Sentiment Hits 3-Year Low


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- U.S. consumer sentiment worsened considerably in November, 
with the Index of Consumer Sentiment dropping to 50.3 from 53.6 in October, 
marking the lowest reading since July 2022, according to preliminary data from 
the University of Michigan's Surveys of Consumers released this morning. 
Year-over-year, the index was down 21.5 points, or 29.9%.

   The Index of Consumer Expectations, which reflects the economic outlook over 
the next 12 months, slipped 1.3 points to 49.0, a 2.6% decrease from October 
and down 36.3% compared to the same month last year. 

   The Current Economic Conditions Index, measuring sentiment about personal 
finances and buying conditions, fell to 52.3 in November, 6.3 points, or 10.8%, 
below the level reported in October and down 18.2% year-over-year. 

   "With the federal government shutdown dragging on for over a month, 
consumers are now expressing worries about potential negative consequences for 
the economy. This month's decline in sentiment was widespread throughout the 
population, seen across age, income, and political affiliation." said Surveys 
of Consumers Director Joanne Hsu.

   Hsu highlighted one key exception, noting that "consumers with the largest 
tercile of stock holdings posted a notable 11% increase in sentiment, supported 
by continued strength in stock markets."




(c) Copyright 2025 DTN, LLC. All rights reserved.