Americans’ views on the U.S. economy improved slightly after a government shutdown ended earlier this month, but remained near historical lows, according to a revised-down reading of a widely tracked survey released Friday by the University of Michigan.
Americans remain “frustrated” about rising prices and have a dimming view of their personal finances, a survey found.
Getty Images
Key Facts
Consumer sentiment—a monthly measurement of Americans’ views on the economy—dropped to 51 in November from 53.6 in October, a slight improvement from a preliminary reading of 50.3, a reading of the University of Michigan’s study found.
The preliminary reading came within reach of an all-time low set in June 2022.
Survey director Joanne Hsu said in a statement that consumer sentiment improved after the government shutdown ended, after respondents earlier expressed worries about “potential negative consequences” for the economy as the shutdown continued, “dragging on.”
A measurement of how Americans currently view the economy dropped to an all-time low of 51.1, down from a preliminary reading of 52.3 and the historical benchmark of 100, as consumers expect prices to rise 4.5% over the next year.
Why Are Americans Pessimistic About The Economy?
Americans are “frustrated about the persistence of high prices and weakening incomes,” Hsu said. Rising prices and steady inflation continue to be a concern among consumers, according to Hsu, who said respondents are reporting their personal finances are “weighed down” by current price tags. Earlier this month, Hsu said consumers were withstanding “pressure” on their finances from “multiple directions,” as Americans anticipated the job market to continue deteriorating and expected to be “personally affected.” The latest report found that consumers’ expectations about losing their jobs fell to the highest reading since January 2020.
Read More