US consumer sentiment hits lowest level since 2022 amid shutdown, trade worries

US consumer confidence declined in November to its lowest level since mid-2022, as worries over the ongoing government shutdown weighed on households, according to survey data released Friday.

Despite the economy’s resilience since the Covid-19 pandemic, driven by strong employment and household spending—recent months have seen a cooling labour market, while President Donald Trump’s renewed tariff measures and shifting trade policies have added uncertainty for consumers and businesses alike.

The University of Michigan’s preliminary consumer sentiment index fell 6% to 50.3 in November, down from 53.6 in October. The report cited growing pessimism about personal finances and short-term business conditions, noting that the prolonged 38-day government shutdown had deepened fears of economic fallout.

“This month’s decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation,” added survey director Joanne Hsu.

A notable exception to the trend is that consumers with larger stock holdings were bullish, given the strength in stock markets.

For now, even though inflation expectations for the year ahead have crept up slightly, they are below readings earlier in the year – when Trump first rolled out his biggest slate of global tariffs. The president had proceeded to postpone some of his steepest planned tariff hikes, only introducing them months later.

The University of Michigan survey comes as the US government shutdown has halted federal data releases too, including a closely watched employment report originally due to be published on Friday as well.

With inputs from agencies