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Economic Confidence Drops To 3-Year Low As Americans Worry About Government Shutdown

1. Consumer sentiment dropped to 50.3 in November, a three-year low. 2. Expectations on economic conditions fell 6.3 points, reflecting growing pessimism. 3. Consumers anticipate rising prices at a 3.6% annual rate over the next decade. 4. Concerns about job security have increased to the highest level since March. 5. A prolonged government shutdown is contributing to economic worries among consumers.

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FAQ

Why Bearish?

The dip in consumer sentiment often precedes reduced spending, impacting S&P 500 earnings, similar to 2022 declines.

How important is it?

High consumer pessimism typically signals decreased spending, impacting S&P 500 companies in retail and discretionary sectors.

Why Short Term?

Consumer spending influences short-term corporate revenues; ongoing pessimism may affect Q4 earnings outlook.

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