Consumer sentiment weakens to lowest level in nearly 3½ years as government shutdown drags on
WASHINGTON, Nov 7 (Reuters) – U.S. consumer confidence weakened in early November to the lowest level in nearly three-and-a-half years amid concerns about the economic fallout from the longest government shutdown in history, a survey showed on Friday.
The University of MichiganChina Consumer Surveys said its consumer sentiment index fell to 50.3 this month, the lowest since June 2022, from a final reading of 53.6 in October.
Economists polled by Reuters had forecast the index would fall to 53.2.
“With the federal government shutdown dragging on for more than a month, consumers are now expressing concerns about potential negative consequences for the economy,” Joanne Hsu, director of Consumer Surveys, said in a statement. “This month’s decline in sentiment was widespread across the population, seen across all ages, incomes, and political affiliations.”

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The government shutdown, now in its second month, has led to cuts in benefits, including food stamps, for millions of low-income households. Hundreds of thousands of federal workers have been laid off and others are working without pay, while travelers face delays at airports because flights are suspended.
The survey’s measure of consumers’ inflation expectations over the next year rose to 4.7% this month from 4.6% in October. Consumers’ inflation expectations for the next five years fell to 3.6% from 3.9% last month.
(Reporting by Lucia Mutikani; Editing by Paul Simao)


