Consumer Sentiment Sinks Faster Than Expected

US consumer sentiment has fallen to one of its lowest points on record, reports the Wall Street Journal. The University of Michigan's latest index slipped to 50.3 in November from 53.6 the previous month, a much sharper drop than expected. Analysts polled by the newspaper anticipated a drop to 53. The new reading is just above the all-time low seen during the pandemic-related inflation surge of 2022. This time around, the ongoing government shutdown hasn't helped, notes the AP.

"With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy," says survey director Joanne Hsu. The decline in sentiment was led by lower-income households, though the report notes that higher-income Americans also are less confident than earlier in the year.

"Across the economy, segments of the population are increasingly dealing with tighter financial conditions," Elizabeth Renter of NerdWallet tells CNBC. "That's certainly true for federal workers and people dependent on food assistance from the federal government. But it's also likely increasingly true for middle-income Americans."