US Consumers Voice Growing Worry About an AI Bubble as Sentiment Rises in November

The preliminary Index of Consumer Sentiment rose to 51.0 from 48.0 in October, a gain of 6.3%, and was level with November 2025, according to the university's Surveys of Consumers. The gauge of current economic conditions climbed to 51.0 from 46.7, and the index of consumer expectations rose to 50.9 from 48.8.

Joanne Hsu, director of the surveys, said consumers' comments showed "growing anxiety over a possible AI bubble", though she added that those worries were "dwarfed by cost of living concerns". The concern showed up in the split between households. Sentiment rose for consumers with lower and middle levels of wealth but fell 5% for those with the largest stock portfolios, which Hsu linked to a turbulent period in stock markets. For companies and investors whose plans rest on continued AI spending, the comments suggest doubts about valuations are no longer confined to professional investors.

The interviews were conducted between October 20 and November 2, so the figures predate this week's sell-off in technology shares, when the Nasdaq Composite had its worst day since April 2025 on Thursday as chip stocks fell on fears of tighter AI regulation after the midterm elections.

Prices still dominate household worries. Hsu wrote that "About 57% spontaneously mentioned that their living standards have been eroded by high prices", the highest share since May and up from 46% in February. "Despite this month's improvement, sentiment is down 10% from February," she wrote.

Inflation expectations eased but stayed high. Consumers expect prices to rise 4.3% over the next year, down from 4.7% in October and the lowest reading since August, but well above the 3.4% recorded in February and every reading in 2024. Long-run inflation expectations slipped to 3.4% from 3.5%, still above the 2.8% to 3.2% range seen in 2024. The university said both measures remain above their levels before the conflict with Iran.

The gains in expected personal finances and business conditions were concentrated among political independents. More than two-thirds of respondents expected Democrats to win the House of Representatives in the midterm elections, and more than half expected the party to win the Senate.

The final November figures are due on Friday, November 20, at 10am Eastern time.