U.S. consumer confidence declined in November, according to new data from the Conference Board. The organization’s consumer confidence index fell to 88.7, down from a revised October figure of 95.5. This marks the lowest level since April, when tariffs announced by President Donald Trump led to a sharp drop in the stock market.
The survey indicated that Americans are becoming more cautious about high prices and slow job growth. Views on the labor market have worsened, with fewer people seeing jobs as “plentiful.” The proportion dropped to 27.6% in November from 28.6% in October and is significantly lower than December’s 37%. Meanwhile, those who said jobs are “hard to get” stood at 17.9%, just below October’s 18.3% but up from September’s 15.2%. Economists consider these figures important indicators for hiring trends and unemployment rates.
“Consumers’ write-in responses pertaining to factors affecting the economy continued to be led by references to prices and inflation, tariffs and trade, and politics, with increased mentions of the federal government shutdown,” said Dana Peterson, chief economist at the Conference Board.
Earlier Tuesday, government data showed that retail sales slowed in September after strong performance during the summer months. While economists expect growth for July through September to be solid—around an annual rate of 3%—many predict weaker results for the last quarter of the year due largely to effects from the recent government shutdown.
The report noted that less-confident consumers may reduce spending; however, this relationship has not always been direct in recent years as spending has sometimes remained steady despite falling confidence levels.
“We do not think that consumer spending is about to hit a cliff, as spending has decoupled from confidence, but risks to the downside are increasing,” said Thomas Simons, chief U.S. economist at Jefferies.
Concerns about affordability remain prominent among Americans and were highlighted during elections earlier this month.
The Conference Board stated that declining confidence was observed across all political groups but was most pronounced among independents. This trend could present challenges for President Trump and Congressional Republicans as economic concerns persist following disruptions caused by tariffs and a prolonged government shutdown.
