Consumer Sentiment Declines Amid Prolonged Government Shutdown

In November 2025, U.S. consumer sentiment dropped to 50.4, marking a 6.2% decline from October and nearly 30% lower than the previous year, according to the University of Michigan's latest survey. This level is the lowest in over three years and approaches the record low recorded in June 2022.

The prolonged federal government shutdown, now exceeding a month, has significantly contributed to this decline. Survey Director Joanne Hsu noted that concerns about the shutdown's potential negative impact on the economy have become widespread across various demographics, including age, income, and political affiliation.

Despite the downturn in sentiment, the retail sector anticipates strong holiday sales, projecting up to $1 trillion in spending during November and December.

Inflation expectations have shown mixed trends. The one-year outlook increased to 4.7%, while the five-year measure decreased to 3.6%.

The ongoing government shutdown has also disrupted public services, including food stamp payments and air travel, affecting millions of low-income families and federal workers.

Analysts caution that the persistent decline in consumer sentiment may negatively impact consumer spending on significant purchases, thereby threatening economic growth.