US consumer sentiment drops to near record low as shutdown persists

"Consumer sentiment fell about 6% in November, with the consumer sentiment index for November 2025 at 50.3, down from 53.6 in October, nearly three points below expectations. Economists polled by the Wall Street Journal expected a 53.0 index reading. The monthly index of consumer sentiment was last this low in June 2022, at 50.0, amid inflation during the Covid pandemic. The latest reading is the lowest reported by the index since at least 1978."

"This month's decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation. The results come amid a blackout on federal data, such as the monthly jobs report, which was due on Friday, with the usual slate of monthly reports suspended due to the government shutdown. In their absence, investors have been turning to smaller, privately funded research reports."

"This week ADP, the US's largest payroll supplier, said private employers added 42,000 new jobs in October, better than expected but still a dramatic slowdown from the three-month moving average from November to January of 188,000 jobs. On Thursday, the outplacement and executive coaching firm Challenger, Gray & Christmas said US-based employers announced 153,074 job cuts in October, up 175% from the 55,597 cuts announced in October 2024. It was the highest level of layoff for any October since 2003."

Consumer sentiment fell about 6% in November to 50.3, down from 53.6 in October and nearly three points below expectations. The reading is the lowest since at least 1978 and matches near-record lows not seen since June 2022. The decline has been widespread across age, income and political affiliation. A prolonged federal government shutdown has suspended regular federal data releases, prompting investors to rely on privately funded reports. Privately collected data showed private payrolls added 42,000 jobs in October, far below recent averages, while announced layoffs jumped to 153,074 in October, the highest October total since 2003.

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