Consumer sentiment plunges to lowest in three years as shutdown hits record length

In a preliminary reading, the University of Michigan consumer sentiment index fell to 50.3 in October, down from 53.6 the month before, the group announced on Friday. That marks a nearly 30% year-over-year decline that is another warning signal for President Donald Trump, who has been facing a slowing labor market.

The survey’s index for current economic conditions notably dropped to 49, the lowest it has been in the survey’s history.

The preliminary numbers are the first to be released after the government entered a shutdown at the start of the month. Markets have largely shrugged off the shutdown, but there are still implications for the economy.

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Not only did consumer sentiment fall, but long-run inflation

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