Americans’ confidence in the economy has dropped sharply as the record-breaking government shutdown enters its second month, according to the University of Michigan’s consumer sentiment survey.
The index fell to 50.3 in November, down from 53.6 in October — its lowest reading since June 2022 and among the weakest in the survey’s history.
Economic Confidence Drops To 3-Year Low As Americans Worry About Government Shutdownhttps://t.co/VcoUG6DfEV pic.twitter.com/ikB0oLdWgh
— Forbes (@Forbes) November 7, 2025
Director Joanne Hsu said the prolonged shutdown has fueled growing concerns about its potential economic fallout.
Sentiment declined 6.2% month-over-month and nearly 30% year-over-year, defying economists’ expectations for an improvement.
The pessimism was broad-based across income and age groups, except for stock market investors, whose sentiment improved by 11% as markets hover near record highs.
Economists warned that if middle-income Americans cut back on spending, it could finally slow the economy’s above-trend growth.
Chief economist Chris Rupkey said the data suggest the economy “is ready to roll over the proverbial cliff.”
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