Consumer sentiment near record low as Americans head into the holidays
U.S. consumer sentiment fell in November to one of its lowest points as Americans head into the holiday season and prepare for Black Friday, a monthly survey found.
The University of Michigan Surveys of Consumers announced Nov. 21 that its Consumer Sentiment Index stands at 51 – higher than its preliminary reading of 50.3 two weeks ago, but down from 53.6 in October. The announcement showed consumer sentiment hovering near historic lows. The index hit its record low of 50 in June 2022.
But Surveys of Consumers Director Joanne Hsu described consumer sentiment as “little changed” in November, noting the 2.6 index decrease from October is within the margin of error. Still, the reading reflects consumers’ ongoing concerns about affordability.
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“After the federal shutdown ended, sentiment lifted slightly from its mid-month reading.” Hsu said in a statement. “However, consumers remain frustrated about the persistence of high prices and weakening incomes.”
The index measures how Americans feel about their personal finances and the overall economy, gauging consumers’ optimism or pessimism, which can influence their spending. It fell in the first four months of 2025, remained unchanged in May, rose in June and July, and has declined each month since.
"By the end of the month, sentiment for consumers with the largest stock holdings lost the gains seen at the preliminary reading,” Hsu said. “This group’s sentiment dropped about 2 index points from October, likely a consequence of the stock market declines seen over the past two weeks.”
The Index of Expectations, however, rose to 51 in November, up slightly from 50.3 in October. It tracks how consumers view prospects for their own financial situation and the general economy over the near and long term. Expectations have fallen 33.7% since November 2024.
Year-ahead inflation expectations also eased slightly, down from 4.6% in October to 4.5%.
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