FX.co ★ US Consumer Sentiment Falls to Second-Lowest on Record

The University of Michigan's consumer sentiment index registered a decline to 50.3 in November, dropping from October's figure of 53.6 and falling short of the anticipated 53.2, according to a preliminary report. This represents the second-lowest level ever recorded, hovering just above the June 2022 nadir, as American consumers expressed growing concerns about the ramifications of the longest government shutdown in U.S. history. The Current Economic Conditions Index reached a historic low of 52.3, largely due to a 17% reduction in evaluations of current personal finances. Meanwhile, the Consumer Expectations Index fell to a six-month low of 49.0, signifying an 11% decrease in projections for business over the coming year. Sentiment saw a broad decline across various demographic lines in terms of age, income, and political affiliation, with one notable exception: households in the upper third of stock ownership reported an 11% increase in confidence, bolstered by robust stock market performance. Inflation predictions were varied, with year-ahead inflation nudging up to 4.7% from 4.6%, contrasted by long-term expectations, which decreased to 3.6% from 3.9%.