Confidence Falls

US consumer confidence in the economy fell in November by the most since April.

Context

Consumer confidence measures how optimistic Americans feel about the economy and their personal finances, which The Conference Board – a non-profit economic think tank – tracks through monthly surveys asking people about their views on jobs, income, and business conditions. The University of Michigan also tracks consumer sentiment through a separate survey, which focuses more on personal finances and cost of living and also fell to near-record lows this month.

Sharp Decline

The Conference Board reported on Tuesday that its consumer confidence index dropped to 88.7 in November, down from 95.5 in October and the lowest number since April, when President Trump’s tariffs announcement caused the stock market to fall. The decline was larger than economists had predicted.

Economic expectations for the next six months fell to their lowest level since April, while people's views of current economic conditions were the most negative they have been in over a year.

Labor Market Concerns

Americans also expressed growing anxiety about employment, with the share of people saying jobs were “plentiful” falling to 27.6%, down from 37% in December 2024. Meanwhile, 17.9% said jobs were “hard to get,” up from 15.2% in September.

Major companies, including Amazon, UPS, Target, and Paramount, announced a wave of layoffs in October as they worked to restructure or integrate AI into their businesses. Recent hiring has concentrated in just two industries: Health care and hospitality.

Multiple Worries

Survey respondents cited several concerns affecting their outlook. Prices and inflation remained the top issues, followed by tariffs and trade policy. Many also mentioned the federal government shutdown, which ended earlier this month after becoming the longest closure in history.

The share of consumers expecting their incomes to rise over the next six months fell to the lowest level since February 2023. Buying plans for major purchases like cars, appliances, and homes all declined.