Americans aren’t worried about the government shutdown. But they remain pessimistic about the cost of living and weak hiring

By Bryan Mena, CNN

Washington (CNN) — Persistent worries about the higher cost of living and few job opportunities pushed consumer sentiment down to its seventh-lowest level on records going back to 1952.

Consumer sentiment edged a hair lower early this month to a preliminary reading of 55, the University of Michigan said Friday — a weak level rarely been seen in the post-World War II era. It’s slightly above the lows it reached this spring when President Donald Trump unveiled massive tariffs.

“Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds,” Joanne Hsu, the survey’s director, said in a release. “Consumers do not expect meaningful improvement in these factors.”

The shutdown of the federal government, which stretched into its tenth day on Friday, has not so far affected Americans’ perceptions about the economy, according to the survey. More than a million federal workers have been furloughed or are working without pay. The macroeconomic effects of the shutdown aren’t significant, according to economists, but they get bigger the longer it lasts.

After a brief recovery, America’s economic mood began to sour again in recent months on growing frustrations about higher prices and a weakening labor market, according to various surveys. But sentiment hasn’t been a good predictor of future spending in recent years. Economists say spending largely hinges on the health of the labor market, which has slowed recently, but remains fairly solid, with unemployment still relatively low.

This story is developing and will be updated.

The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.