US consumer sentiment deteriorated slightly in November as Americans fretted about high prices, weaker incomes, and mounting layoffs, nearing record lows.
That’s according to the University of Michigan’s final reading of its survey of consumers. Preliminary data released earlier this month showed plunging sentiment for November, with overall sentiment hitting 50.3 amid concerns about the effect of the government shutdown on the economy.
Sentiment improved a bit after the shutdown ended Nov. 12, reaching a level of 51 — lower than October’s 53.6 and down 29% from one year ago.
Read more: What is consumer confidence, and why does it matter?
Still, that didn’t totally quiet consumers’ anxiety. For one, the government’s funding agreement only lasts until the end of January. In the meantime, Americans are facing the prospect of spiking health insurance premiums, an unemployment rate that’s above where it was a year ago, and stubborn inflation.
What’s more, 69% of consumers now expect unemployment to rise in the year ahead, more than double the rate from this time last year. The perceived probability of losing one’s job is also worse this month and at its highest level since 2020, according to Joanne Hsu, the director of the survey of consumers.
Young people are feeling especially dire. For Americans aged 18 to 34, expectations for losing one’s job in the next five years hit the highest level since 2012.
This month, consumers’ view of the current state of their personal finances also slid by about 15%, even as their view for year-ahead inflation eased slightly to 4.5% from 4.6% in October, Hsu said.
“Cost-of-living concerns and income worries dominate consumer views of the economy across the country,” Hsu said.
Meanwhile, consumers with large stock holdings who had seen an increase in sentiment earlier in November have since erased those gains amid market declines, Hsu said.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.
Sign up for the Mind Your Money newsletter
Read the latest financial and business news from Yahoo Finance
