According to data released by the University of Michigan on Friday, the preliminary November consumer sentiment index fell from 53.6 in October to 50.3, the lowest level since June 2022. The current conditions index, which measures the present economic situation, dropped by 6.3 points to a record low of 52.3, reflecting growing market concerns about the impact of a government shutdown.

The report indicated that confidence declined across all age, income, and political groups. Although consumers "spontaneously mentioned" rising prices for the fifth consecutive month, long-term inflation expectations eased. Consumers expect the average annual inflation rate over the next five to ten years to be 3.6%, a three-month low. Expectations for inflation over the next year rose slightly. Joanne Hsu, the survey director, stated in a release, "Consumers are feeling financial pressures from multiple fronts, and they expect the labor market to continue weakening in the future, with themselves being affected."

Additionally, the ongoing U.S. government shutdown continues to impact the release of economic data. On November 7, due to the government shutdown, the U.S. Bureau of Labor Statistics failed to release the October non-farm payroll report as scheduled, marking the second consecutive "absence" of the non-farm report. Federal Reserve Vice Chair Jefferson noted that despite the lack of official data, the Fed still has sufficient information to formulate policies but emphasized that official data remains the "gold standard" for decision-making. Kevin Hassett, Director of the White House National Economic Council, warned that the economic impact of the government shutdown far exceeds expectations and could lead to a slowdown in fourth-quarter GDP growth. These uncertainties have prompted investors to turn to safe-haven assets, with gold, as a traditional safe-haven tool, likely to benefit.