Consumer outlook for household finances falls to lowest in over a decade

Consumers' outlooks for their economic futures have the University of Michigan Surveys of Consumers

U.S. consumers have rarely felt worse about their economic futures, according to data released Friday from the University of Michigan's widely followed Surveys of Consumers.

Consumers’ five-year outlooks for their household finances fell to the lowest in over a decade in October, preliminary results of the monthly survey found. With an index reading of 96, it's the worst month since at least July 2011, when the survey resumed asking the question about the five-year outlook.

Overall consumer sentiment was essentially unchanged from September, but was down 22% compared with the reading for October 2024.

“It’s very clear consumers don’t feel like they’re thriving,” said Joanne Hsu, the survey’s director. While consumers indicate that the prospect of a major financial calamity remains low, “they expect to continue to not thrive,” she said.

President Donald Trump’s shifting trade policies and federal spending cuts have helped keep the U.S. economy mired in uncertainty.