Consumer Confidence Dips Amid Economic Concerns
The Big Money Show panel is set to examine how rising expenses for food, housing, and utilities are affecting low-income families. Meanwhile, new data indicates a growing worry among households over the economic effects of the ongoing government shutdown. Consumer confidence has reached its lowest point in over three years.
The University of Michigan’s preliminary Consumer Confidence Index for November reveals a score of 50.3, falling short of economists’ expectations of 53.2. This marks the lowest consumer sentiment recorded since June 2022, a time when inflation was at a 40-year high.
“Consumer sentiment dropped approximately 6% in November, largely due to a significant 17% decline in current personal wealth and an anticipated 11% dip in business confidence compared to last year,” remarked Joan Hsu, director of consumer research at the University of Michigan. “The government shutdown has been ongoing for over a month now, and it seems consumers are increasingly anxious about its potential negative impact on the economy.”
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The same preliminary report indicated that consumer sentiment had plummeted to its second-lowest level ever. “This decrease was apparent across various demographics, including age, income, or political views,” Hsu added. Interestingly, those with larger stock portfolios experienced an 11% rise in sentiment, likely buoyed by ongoing stock market gains.
Inflation expectations rose slightly to 4.7% in November from 4.6% the previous month, yet remain significantly lower than the figures recorded in May 2021 after the Trump administration’s price adjustments.
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On a broader level, long-term inflation expectations dipped to 3.6% in November, down from 3.9% last month. Currently, these expectations are below the average recorded in the previous year and the peak reading in April 2025.
Inflation has been on the rise lately as businesses navigate increased costs due to tariffs, which are often passed on to consumers. The Consumer Price Index for September showed inflation at 3%, the highest level since February, well above the Federal Reserve’s target rate of 2%.
Fed Chairman Jerome Powell underscored the need to keep long-term inflation expectations “firmly anchored” as policymakers weigh interest rate changes. Hsu mentioned that the consumer interviews for this report were conducted prior to the upcoming election on Tuesday, with final confidence results set for release on November 21st.
