Consumer confidence in the economy faltered in December as Americans worried about higher prices and the impact of President Donald Trump’s sweeping tariffs.
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On 23 December 2025, 02:30 AM IST
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The Conference Board said on Tuesday that its consumer confidence index fell 3.8 points to 89.1 in December from a revised reading of 92.9 in November. That’s close to the 85.7 reading since April, when Trump rolled out his import tariffs on US trading partners.
A measure of Americans’ short-term expectations for their income, business conditions and the job market held steady at 70.7, but was still below 80, which could signal a slowdown ahead. It was the 11th consecutive month that the reading fell below 80.
Consumers’ assessment of their current financial situation fell 9.5 points to 116.8.
Written responses to the survey showed that prices and inflation remained consumers’ top concerns, along with tariffs, despite repeated claims by President Trump that inflation is a hoax.
Job market expectations have also declined this month.
The Conference Board survey found that 26.7% of consumers said jobs were “plenty,” up from 28.2% in November. Also, 20.8% of consumers said it was “hard to get a job,” up from 20.1% last month.
Last week, the government reported that the US economy gained a healthy 64,000 jobs in November but lost 105,000 in October. Notably, the unemployment rate rose to 4.6% last month, the highest since 2021.
The nation’s labor market is stuck in a “low hire, low fire” mode, economists say, as businesses stagnate due to uncertainty over Trump’s tariffs and the lingering effects of elevated interest rates. Job creation has averaged 35,000 per month since March, up from 71,000 in the year ended March. Fed Chair Jerome Powell recently said he doubts those numbers will be cut further.
Despite the widespread pessimism, the proportion of those surveyed who think a recession is unlikely in the next year is increasing.
The December survey showed respondents’ views of their family’s current financial situation dipped into negative territory for the first time in nearly four years. On the other hand, expectations about their future financial situation were the most positive since January.
Also on Tuesday, the government reported that the economy expanded at a 4.3% annual rate in the third quarter, although economists expect a more subdued fourth quarter.
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