U.S. consumer confidence hit a notable low, with the Conference Board’s consumer confidence index dropping by 3.8 points to 89.1 its lowest since April and marking the fifth consecutive monthly decline. This downturn is primarily attributed to ongoing economic issues, including high prices and the repercussions of President Donald Trump’s tariffs.
While the expectations index, which gauges consumers’ short-term outlook on income and job conditions, remained unchanged at 70.7, it is significantly below the 80-point threshold typically associated with recession fears. This marks the 11th consecutive month below that level.
Concurrently, the assessment of current economic conditions saw a sharp decline, plummeting 9.5 points to 116.8, with inflation and tariffs cited as primary concerns, contradicting President Trump’s assertion that inflation is a “hoax.”
Additionally, perceptions of the job market worsened, with fewer individuals viewing job availability positively and more finding employment difficult to secure. The labor market has stagnated, with job creation averaging just 35,000 monthly since March, down from 71,000 previously.
Economists link this stagnation to tariff-driven uncertainties and rising interest rates, while the unemployment rate climbed to 4.6% in November the highest since 2021.
Despite this negative sentiment regarding current conditions, consumers expressed a newfound optimism about their future finances, reaching levels not seen since January. The economy recorded a 4.3% expansion in the third quarter; however, a slowdown is anticipated in the fourth quarter due to potential government shutdowns and decreased consumer spending.
These trends highlight the intricate relationship between trade policies, consumer sentiment, and economic health, presenting significant challenges for policymakers striving to stimulate growth amid the adverse impacts of tariffs.
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