U.S. consumer sentiment eased in November as households contended with persistent inflation and weakening incomes, according to the latest reading from University of Michigan. The index fell to 51.0 from 53.6 in October.
U.S. consumer sentiment remained subdued in November as households weighed persistent inflation, higher prices and weakening incomes, according to the final reading of the University of Michigan (UMich) monthly survey of consumers. The headline sentiment index dipped modestly to 51.0 from 53.6 in October, underscoring continued unease despite a brief lift after the end of a federal government shutdown.
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The “current economic conditions” component sank sharply to 51.1 — its weakest showing in the survey’s history — with consumers reporting deteriorated personal finances and a notable drop in willingness to purchase durable goods.
At the same time, the expectations sub-index ticked up slightly to 51.0 from 50.3, capturing a modest improvement in outlook for the near term, although long-term optimism remains far below pre-pandemic levels.
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Survey director Joanne Hsu said consumers continue to struggle with “the persistence of high prices and weakening incomes,” a combination that is eroding spending power across most households.
Despite a slight rebound from mid-month, sentiment among households with substantial stock holdings weakened again by the end of November — likely reflecting recent stock market declines — signaling that even more affluent households are feeling cautious.
The drop in consumer confidence adds to signs of cooling demand as businesses grapple with the ripple effects of tariffs, elevated costs and shifting consumer behavior.
Retailers, policymakers and economists now watch closely whether this sentiment slump will translate into slower consumer spending in the lead-up to the holiday season — a traditionally critical period for U.S. consumer-driven growth.
