Trendpills
U.S. consumer sentiment experienced a significant decline in early November, dropping to its lowest level in months and signaling growing pessimism among households about the economic outlook. The preliminary reading of the University of Michigan's consumer sentiment index for November fell to 50.3, a notable decrease from October's final reading of 53.6 and below analysts' expectations of 53.2. This marks a continued downward trend for the key economic indicator.
The drop in November follows a disappointing end to the previous month. The final October figure was revised downward to 53.6 from a preliminary estimate of 55, making it a five-month low at the time. The persistent decline in consumer confidence underscores concerns over personal finances and the broader economy's trajectory. Compared to the same period a year ago, when the index stood at 70.5, sentiment has fallen by nearly 24%, highlighting a stark shift in consumer attitudes over the past year.
The weakness in the headline number is reflected in its underlying components. According to the official final results for October 2025, the gauge for current economic conditions fell to 58.6 from 60.4 in September. Similarly, the index of consumer expectations, which reflects households' six-month outlook, slipped to 50.3 from 51.7. Both components were revised down from their preliminary October estimates, indicating a broad-based deterioration in economic confidence.
The year-over-year historical data shows a clear and sustained erosion of confidence since late 2024. These sentiment surveys are closely watched by economists and policymakers, as a decline in consumer morale can often precede a slowdown in consumer spending, which is a major driver of the U.S. economy. The latest figures suggest that households are becoming increasingly cautious as they navigate financial pressures and an uncertain economic landscape.
