Consumer Sentiment Plummets to Near-Record Lows: Economic Concerns Rise

Friday, 7 November 2025, 17:42

Consumer sentiment plunged to near-record lows in November as inflation and the job market struggles weighed heavily. The University of Michigan index dropped to 50.3, indicating widespread concerns across demographics. This decline raises alarms amid growing economic worries tied to the ongoing government shutdown.

Thehill — Consumer Sentiment Plummets to Near-Record Lows: Economic Concerns Rise

Consumer Sentiment Analysis

Consumer sentiment plunged to near-record lows in November as the slowing job market, stubborn inflation, and government shutdown raised increasing problems for President Trump. The University of Michigan consumer sentiment index dropped to 50.3 in November, down from 53.6 the previous month and 71.8 a year prior.

Impact of the Current Economy

The November reading was the worst since the record low of 50 in June 2022.
Joanne Hsu, director of the Michigan Surveys of Consumers, noted that widespread sentiment declines cut across all demographic groups.
Only top stockholders reported improved economic outlooks due to recent market rallies.

Current Conditions and Future Outlook

The Michigan current conditions index fell to 52.3, indicating deteriorating views of the economy.

Political Implications

As Trump and Republican support wanes amid economic struggles, recent election results showed Democratic victories, raising further concerns for GOP strategies ahead of future elections.

Conclusion: Shifts in Economic Sentiment

Despite the current downturn, some economists suggest optimism may rebound post-shutdown. Michael Peace from Oxford Economics emphasized potential rebounds in real income growth and inflation stabilization.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.