(MENAFN) American consumer sentiment plunged dramatically in November, hitting its lowest point in over two years as anxieties over employment stability and persistent inflation intensified, according to preliminary data released Friday.

The University of Michigan (UM) Surveys of Consumers reported the U.S. Consumer Sentiment Index tumbled to 50.3 in November 2025, declining sharply from October's final reading of 53.6 and significantly below last November's 71.8.

The dismal figure also underperformed market forecasts of 53.2, reflecting deepening consumer apprehension about job security and rising prices.

The preliminary Current Economic Conditions Index dropped to 52.3 in November, down from October's final reading of 58.6 and beneath last November's 63.9. The Index of Consumer Expectations sank to 49, falling from October's final reading of 50.3 and well below last November's 76.9.

Inflation outlook showed mixed signals: year-ahead inflation expectations edged upward from 4.6 percent in October to 4.7 percent in November, while long-run inflation expectations retreated from 3.9 percent in October to 3.6 percent in November.

Consumer sentiment retreated approximately 6 percent in November, driven by a precipitous 17 percent collapse in current personal finances and an 11 percent deterioration in year-ahead expected business conditions, reported Joanne Hsu, director of the UM's Surveys of Consumers.

"With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy," she added.

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