Consumer sentiment drops 2.6 index point in November: Survey

The Current Index fell to 51.1, down from 58.6 in October and below last November’s 63.9. The Expectations Index rose to 51.0, up from 50.3 in October and below last November’s 76.9.

Over the course of the month, sentiment initially fell as the federal shutdown dragged on, then it lifted slightly later in the month after the shutdown ended, said U-M economist Joanne Hsu, director of the surveys.

Overall, consumers continue to be focused on the bread-and-butter issues that directly influence their personal finances, with continued frustration over high prices and weakening incomes, she said.

This month, current personal finances and buying conditions for durables both plunged, whereas expectations for the future improved a touch but remain subdued. “Cost-of-living concerns and income worries dominate consumer views of the economy across the country,” Hsu said. “Other major developments have had limited impact on consumer sentiment this month.

“While the end of the federal shutdown was surely welcomed, consumers had not been anticipating long-run consequences of the shutdown. Stock market performance has been influencing economic attitudes for consumers with large holdings, with little effect on the rest of the population.”

Assessments of current personal finances plummeted about 15 per cent as consumers face pressures from multiple sources. The share of consumers spontaneously mentioning the negative effects of high prices on their personal finances rose for the fifth consecutive month to 47 per cent, up from 34 per cent in January 2025.

In addition, 26 per cent of consumers spontaneously referenced weak incomes, surging from 20 per cent last month and the highest seen since 2021, according to Hsu.

Overall, higher-income consumers and those with large stock holdings express much stronger views of their personal finances than other consumers. Still, all income and wealth groups reported a weakening in personal finances compared with last month.

ALCHEMPro News Desk (RR)