Nov. 7 (UPI) — A new survey by the University of Michigan suggested that Americans may be frightened over the economy as the ongoing U.S. government shutdown reverberates with no end in sight.
The survey released Friday showed consumer sentiment at its lowest in three years and near its worst at UM’s second-lowest reading since at least 1978 as the shutdown sent confidence to near-record lows as economic concerns deepen.
“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” according to survey Director Joanne Hsu.
The University of Michigan’s monthly Index of Consumer Sentiment posted a more than 6% decline to a little over 50% for the month. It was a 30% decline from about a year ago.
“This month’s decline in sentiment was widespread throughout the population, seen across age, income and political affiliation,” Hsu added.
UM’s well-documented survey showed a gradual decline in consumer confidence over the year starting in February in the wake of tax-like tariffs imposed by U.S. President Donald Trump.
“Across the economy, segments of the population are increasingly dealing with tighter financial conditions,” Elizabeth Renter, senior economist at NerdWallet, told CNBC.
Renter said that is “certainly true for federal workers and people dependent on food assistance from the federal government. But it’s also likely increasingly true for middle income Americans.”