Consumers are not worried about the shutdown. But they are worried about jobs.

The government may be shutting down, but consumers barely noticed it in early October.

Michigan’s Consumer Confidence Index came in at 55.0 in the preliminary October reading of the closely watched survey, well below September’s final reading of 55.1. However, it is the lowest sentiment reading since May, when consumers reacted to President Donald Trump’s tariff announcements. Economists surveyed The Wall Street Journal and Dow Jones Newswires He expected a sharp drop in sentiment to 53.5.

The poll, conducted through Monday, October 6, showed little change from the previous month’s results, even amid the beginning of the federal government shutdown. The survey indicated that consumers’ perceptions of current economic conditions improved slightly in October, while expectations for future economic conditions decreased somewhat.

“Overall, consumers see very few changes in the economic outlook compared to last month,” said Joan Hsu, director of the survey. “The interviews reveal little evidence that the ongoing federal government shutdown has changed consumers’ views about the economy so far.”

Functional concerns remain

The report showed that consumers in October still had many of the same concerns they had in September, especially those related to the labor market. Heather Long, chief economist at Marine Federal Credit Union, noted that 60% of survey respondents expect unemployment to rise in the next year.

“American consumers are pessimistic and it’s easy to understand why: They’re starting to see the effects of tariffs on in-store prices, and they’re worried about the job market,” Long wrote.

However, while concerns about the labor market persisted, consumers felt somewhat more optimistic about inflation, with inflation expectations for next year falling slightly to 4.6% from 4.7%.