The University of Michigan's consumer sentiment index fell 8% in January, to 90.7, the lowest reading since October 2016 and the biggest drop since September 2015. It missed expectations by a mile, with economists anticipating a reading of 97.0.
Beyond the headline number: Measures of consumer sentiment, views on current economic conditions and economic expectations all reversed course from December, turning negative on a month-over-month and year-over-year basis.
- The study's index of consumer expectations fell 10% from December's reading and 9.3% from its January 2018 level.
According to the survey, economists estimate the U.S. government shutdown, which began Dec. 22, is subtracting as much as 0.2% from quarterly GDP growth every week.
- That's twice the White House's recently doubled estimate.
What they're saying: "What you have now is not much more upside being seen, you see a lot more downside with the political agenda and trade conflicts, and no promise or hope for anything else like infrastructure," PwC global chairman Bob Moritz told CNBC on Tuesday.
Flashback to September: Obama vs. Trump's midterm economy
