Consumer sentiment dropped to a near-record low amid government shutdown concerns, according to the University of Michigan’s consumer-sentiment index.

The index reported a reading of 50.3 in November, down from 53.6 in October and down 29.9% year over year. This reading is the lowest since June 2022, which was the lowest level on record. 

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

A 17% decrease in current personal finances and an 11% drop in year-ahead expected business conditions led to the overall drop in sentiment. Year-ahead inflation expectations also increased from October to 4.7% while long-run inflation expectations decreased from 3.9% in October to 3.6% in November.