In a recent Consumer Confidence survey, Americans showed growing unease as the index slipped to 89.1 in December, down 3.8 points from November’s revised 92.9. The drop brings the figure close to the 85.7 level seen in April, the month President Donald Trump rolled out his import taxes on U.S. trading partners.
Consumer Confidence Index
The Conference Board’s measurement of how optimistic or pessimistic households feel about the economy fell to 89.1 in December. While the change was modest, it signals that more people are worried about the state of the economy. The index’s short-term expectations gauge-covering income, business conditions and the job market-held steady at 70.7, but remains well below the 80 threshold that analysts often use to flag a looming recession. This is the 11th consecutive month the reading has stayed under 80.
Prices, Inflation and Tariffs
Write-in responses from the survey revealed that high prices and inflation are consumers’ biggest concerns, with tariffs also ranking high. The data suggest that the price pressures linked to President Trump’s sweeping tariffs are still weighing on households’ day-to-day decisions.
Job Market Sentiment
Perceptions of the labor market shifted in December. Only 26.7 % of respondents said jobs were “plentiful,” a drop from 28.2 % in November. Meanwhile, 20.8 % said jobs were “hard to get,” up from 20.1 % last month. These changes reflect a growing sense of uncertainty among workers.
Labor Market Numbers
Government figures released last week show that the U.S. economy added 64,000 jobs in November, but lost 105,000 in October. The unemployment rate rose to 4.6 % in December, the highest level since 2021. Economists describe the current labor market as a “low hire, low fire” environment, where firms are hesitant to hire or fire due to tariff uncertainty and the lingering effects of elevated interest rates.
Since March, job creation has averaged 35,000 per month, compared with 71,000 in the year ending in March. Fed Chair Jerome Powell said recently that he suspects those numbers will be revised even lower.
President Trump’s Dividend Proposal
During a press Q&A on Monday, President Donald Trump said he’ll pay Americans $2,000 dividends from tariff revenue. Administration officials noted that the proposal has not yet been formally sent to the Senate.
Key Takeaways
- Consumer confidence fell to 89.1 in December, close to the 85.7 level of April.
- Prices, inflation and tariffs remain the top concerns for households.
- Job sentiment worsened, with fewer people seeing jobs as plentiful.
- The unemployment rate climbed to 4.6 %, the highest since 2021.
- President Trump plans a $2,000 dividend from tariff revenue, though the proposal is not yet in the Senate.
The data paint a picture of a consumer base growing wary of high prices and tariff-related uncertainty, while the labor market continues to struggle under the weight of policy and economic conditions.
