Economic Confidence Hits Three‑Year Low Amid U.S. Government Shutdown Fears

U.S. consumer confidence plunged in early November 2025, marking the lowest level in over three years, as the ongoing federal government shutdown deepened economic anxiety. The University of Michigan’s preliminary Consumer Sentiment Index fell to about 50.3, down significantly from October’s 53.6 and nearing levels last seen in June 2022. The downturn was broad‑based, cutting across age, income and political groups — with the notable exception of households holding large equity stakes, who remained more confident thanks to strong stock‑market performance. Analysts say the shutdown is undermining perceptions of both current economic conditions and future prospects. A separate gauge of current conditions slid to a record low of about 52.3, while expectations for the year ahead dropped to 49. Inflation worries also rose, with short‑term expectations climbing to 4.7%. Meanwhile, many households are signaling rising concern about the job market — 62 % of surveyed consumers said they expect higher unemployment in the next year, the highest reading since 1980. Economists warn that if sentiment weakens further, consumer spending could slow, putting a drag on growth. A long localised shutdown could shave as much as 1 – 2 percentage points from quarterly GDP, according to the Congressional Budget Office. #consumerconfidence #governmentshutdown #USEconomy #sentimentdrop #SlimScan #GrowthStocks #CANSLIM