WASHINGTON — U.S. consumer sentiment weakened to the lowest level in nearly 3½ years in early November amid worries about the economic fallout from the longest government shutdown in history, a survey showed on Friday.
The University of Michigan’s Surveys of Consumers said its Consumer Sentiment Index fell to 50.3 this month, the lowest level since June 2022, from a final reading of 53.6 in October.
Economists polled by Reuters had forecast the index would dip to 53.2.
“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” Joanne Hsu, the director of the Surveys of Consumers, said in a statement. “This month’s decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation.”
The government shutdown, now in its second month, has led to cuts in benefits, including food stamps, for millions of lower-income households. Hundreds of thousands of federal workers have been furloughed and others are working without pay, while travelers are facing delays at airports as flights are grounded.
The survey’s measure of consumer expectations for inflation over the next year increased to 4.7% this month from 4.6% in October. Consumers’ expectations for inflation over the next five years eased to 3.6% from 3.9% last month.
