U.S. shutdown sours consumer sentiment

Consumer sentiment dropped to a three-year low and close to the lowest point ever recorded by the University of Michigan one month into the government shutdown, with pessimism over personal finances and anticipated business conditions weighing on Americans.

- ASSOCIATED PRESS

The November survey showed the index of consumer sentiment at 504, down a startling 6.2% from last month and it plunged nearly 30% from a year ago.

Economists were caught off guard. Those polled had expected a month-to-month increase for a reading of 54.2.

“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” said Joanne Hsu, surveys of consumers director at the University of Michigan. “This month's decline in sentiment was widespread throughout the population, seen across age, income, and political affiliation.”