The Big Money Show panel discusses the impact of rising costs of groceries, housing and utilities on low-income households.
WE consumer sentiment fell to its lowest level in more than three years and near an all-time low as household concerns about the economic impact of the government shutdown grew, new data shows.
The preliminary reading of the University of Michigan Consumer Confidence Index for November was 50.3, well below the 53.2 expected by economists surveyed by LSEG.
This is the lowest level of consumer confidence reported by the index since a reading of 50 in June 2022, when the U.S. economy was in the grip of the highest level of inflation in 40 years.
“Consumer confidence fell about 6% in November, driven by a 17% decline in current personal finances and an 11% decline in expected business conditions for the coming year,” said Joanne Hsu, director of consumer surveys at the University of Michigan. “With the federal government shutdown It has been more than a month since consumers have expressed their concerns about the potential negative consequences for the economy. »
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Consumer confidence fell to its second lowest level on record in the University of Michigan’s preliminary report for November. (Stephanie Keith/Bloomberg via Getty Images)
“This month drop in feeling “was prevalent across the population, based on age, income and political affiliation,” Hsu said. “One key exception: Consumers in the largest tercile of stock holdings showed a notable 11% increase in sentiment, supported by continued strength in stock markets.”
Consumer inflation expectations rose from 4.6% last month to 4.7% in November’s preliminary report – although they remain well below the numbers recorded in May after the Trump administration’s first move. price announcements.
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Longer term inflation expectations rose from 3.9% last month to 3.6% in November. Inflation expectations are now below the midpoint between the numbers seen a year ago and the 2025 peak in April.
Inflation has been trending upward in recent months as tariffs increase costs for businesses that are passed on to consumers. September’s consumer price index showed inflation hit 3% for the first time since February, well above the level The Federal Reserve Target rate of 2%.
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Fed Chairman Jerome Powell said rate cuts would depend on data and that a December cut was not a foregone conclusion. (Jim Watson/AFP/Getty Images / Getty Images)
Chairman of the Fed Jerome Powell spoke about the importance of keeping long-term inflation expectations “well anchored” near the Fed’s target as policymakers evaluate interest rate movements.
Hsu noted that the talks for this release concluded before the elections held on Tuesday. Final consumer confidence results for November will be released on November 21.
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