Consumer sentiment in the United States has fallen to a near-record low, with Americans' perceptions of current economic conditions deteriorating under President Donald Trump's administration. This decline is attributed to ongoing price increases, large-scale layoffs, impending insurance premium hikes, and substantial cuts to food aid programs.

The University of Michigan's Surveys of Consumers released updated data indicating that consumer sentiment has decreased by over 6% this month compared to October. This decline is largely driven by fears surrounding the government shutdown and its potential negative consequences for the economy.

Joanne Hsu, director of the Surveys of Consumers, noted that this month's decline in sentiment was widespread, affecting various demographics across age, income, and political affiliation. However, consumers in the highest tercile of stock holdings reported an 11% increase in sentiment, buoyed by the continued strength of stock markets.

The latest survey recorded a consumer sentiment reading of 50.3, marking the second-lowest level since 1978. Additionally, the university's index for current economic conditions fell to an all-time low of 52.3 in November, a nearly 11% decrease from the previous month.

Heather Long, chief economist at Navy Federal Credit Union, highlighted that middle-class and lower-income Americans are particularly anxious about the shutdown, rising costs, and the possibility of job losses within the next year. Alex Jacquez, chief of policy and advocacy at the Groundwork Collaborative, commented on the data, stating that Americans are losing faith in the economy as they face increasing financial pressures. Jacquez emphasized that the economic mismanagement under President Trump has left many households struggling with record debt and escalating prices, contributing to the current low consumer sentiment, which is the lowest since 2022.