Consumer Confidence Falls Sharply Amid Inflation and Job Woes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Consumer confidence dropped in November as inflation and weak job growth weighed on public sentiment. The Conference Board’s index fell sharply, reflecting broader economic unease across political lines. A recent government shutdown and slowing retail sales add to economic concerns.
Consumer Confidence Quick Looks
- U.S. consumer confidence index fell to 88.7 in November.
- Drop follows government shutdown and signs of job market weakness.
- Inflation and high living costs continue to pressure households.
- The November figure marks the second-lowest reading since April.
- Confidence decline spans political affiliations, especially among independents.
- Retail sales also showed signs of slowing in recent data.
- Economists expect softer growth in the fourth quarter of 2025.
Consumer Confidence Falls Sharply Amid Inflation and Job Woes
Deep Look
Consumer confidence in the U.S. took a significant hit in November, with Americans increasingly concerned about high living costs, sluggish hiring, and the lingering effects of a recent government shutdown. According to data released Tuesday by the Conference Board, its consumer confidence index fell to 88.7, down from October’s upwardly revised 95.5.
This latest reading marks the second-lowest level of confidence since April, a month that also saw market turbulence following major tariff announcements by President Donald Trump. The data signals a growing sense of unease among American consumers at a time when economic stability is being closely scrutinized.
The Conference Board’s survey revealed a clear shift in how Americans view the economy, particularly the labor market. Concerns about job availability and wage growth contributed to the decline. Across the political spectrum, consumers reported a bleaker outlook—with independents showing the steepest drop in sentiment.
This decline in confidence poses both economic and political risks. Consumer sentiment is a leading indicator of spending behavior, and weaker confidence can slow economic activity, particularly in the retail and service sectors that depend heavily on discretionary spending.
Politically, the timing of this drop may prove challenging for President Trump and congressional Republicans. Although the effects of the government shutdown have largely passed, its impact appears to have reverberated through public perception of the economy.
Earlier Tuesday, government figures revealed a cooling in retail sales for September. After a summer of relatively strong spending, the slowdown suggests a shift in consumer behavior that could influence fourth-quarter economic performance. While economists are still forecasting solid growth for the July to September period, many anticipate that the final quarter of 2025 could show signs of weakness.
Persistent inflation continues to weigh heavily on household budgets. Despite earlier optimism that price pressures were easing, consumers remain wary of rising costs in essential categories like food, housing, and healthcare. This sustained inflation is likely contributing to the unease expressed in the Conference Board’s report.
As Americans grapple with economic uncertainty, policymakers face increasing pressure to address both the root causes and the perception of instability. If confidence remains low through the holiday shopping season, it could have far-reaching effects on retail earnings, labor demand, and ultimately, the broader economy.
With election season fast approaching, economic sentiment is likely to remain a key topic for both parties. How leaders respond to inflation, employment challenges, and economic insecurity will shape both public opinion and voter behavior in the coming months.
You must Register or Login to post a comment.