Consumer confidence among Americans took a noticeable hit in November, with worries over job prospects driving much of the downturn. The Conference Board’s Consumer Confidence Index fell sharply to 88.7, marking its lowest reading in seven months and dropping by 6.8 points from October. This decline signals growing unease among consumers about the present and future conditions of the U.S. economy, particularly concerning their ability to find and keep jobs.
The Conference Board survey reveals that consumers’ view of current business conditions and their assessment of the labor market have both worsened. The Present Situation Index, which reflects current income, business, and employment conditions, dropped significantly. Consumers are increasingly concerned about job availability, and this pessimism has a palpable effect on overall confidence. Stephanie Guichard, Senior Economist at The Conference Board, noted the slump in confidence largely stems from rising doubts about employment opportunities, even as other economic indicators remain somewhat mixed.
This shift is crucial because consumer confidence typically drives spending behavior, which in turn influences economic growth. When people worry about job security, they tend to reduce discretionary spending and prioritize saving. That cautious approach can slow economic activity, creating a feedback loop that may further weaken confidence. Interestingly, while the short-term outlook deteriorated, prior months showed some strength as inflation expectations had begun to ease, offering a glimmer of hope despite the recent downturn.
The labor market concerns are compounded by consumers’ expectations for the near future, which remain below the level considered healthy for sustained economic growth. The Expectations Index now sits well below the threshold of 80, an indicator that has historically signaled recessions when sustained over multiple months. Experts watching these metrics warn that the current sentiment could foreshadow a slowdown if job market conditions do not improve in the coming months.
Among the factors influencing this mood is the broader uncertainty about economic policies and external shocks that could impact business investment and hiring decisions. The Conference Board’s data, combined with expert analysis, suggests that while the U.S. economy shows resilience in some areas, the cautious stance of consumers reflects genuine worry about the labor market’s ability to absorb future shocks. This dynamic will likely remain a focal point for policymakers and businesses as they navigate the closing months of 2025.
