U.S. Consumer Sentiment Plummets in November 2025, Reaching Near-Record Lows
U.S. consumer sentiment saw a significant 6% decline in November 2025, with the index falling to 50.4, indicating a sharp drop in confidence and nearing historical lows.
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Overview
- Consumer sentiment in the United States experienced a substantial decline of approximately 6% during November 2025, signaling a significant economic shift.
- The consumer sentiment index dropped to 50.4 in November 2025, a notable decrease from the previous month's figures, reflecting growing public unease.
- This plummet in consumer confidence indicates a significant decline in the public's economic outlook and spending intentions for the near future.
- The current sentiment levels are approaching near-record lows observed over the past year, highlighting a sustained period of consumer pessimism.
- The sharp drop in November 2025 suggests potential challenges for economic stability as consumer confidence is a key indicator of future spending and growth.
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Analysis
Center-leaning sources are neutral in their coverage of the consumer sentiment drop, presenting a balanced view of the economic data. They report the significant decline while incorporating diverse expert opinions and crucial contextual factors. This approach avoids loaded language and ensures readers receive a comprehensive understanding of the situation, including potential mitigating factors and alternative explanations.
"Consumer sentiment dropped to a three-year low and close to the lowest point ever recorded by the University of Michigan one month into the government shutdown, with pessimism over personal finances and anticipated business conditions weighing on Americans."
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FAQ
The decline is primarily due to worries about the ongoing federal government shutdown, high costs of living, potential job losses, and negative economic consequences perceived by consumers. This decline was widespread across age, income, and political groups, with people fearing economic instability.
The consumer sentiment index at 50.4 in November 2025 is near record lows, approaching the second-lowest readings since 1978 and just above the all-time low of 50.0 recorded in June 2022. This represents a major drop and sustained pessimism in consumer outlook.
Year-ahead inflation expectations have slightly increased to 4.7%, though long-run inflation expectations have decreased. While most consumer groups show decreased sentiment, consumers with the largest stock holdings reported increased confidence, supported by strong stock market performance.
The sharp fall in consumer sentiment indicates reduced consumer confidence and spending intentions, which may lead to slower economic growth or instability, as consumer confidence is a key predictor of future spending and overall economic health.
History
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