US consumer confidence takes sharp turn heading into holiday season

US Consumer Confidence Falls Ahead of Holidays

U.S. consumer confidence declined sharply in November, showing growing concern among households as they head into the holiday shopping period. The latest data from the Conference Board revealed that optimism about current economic conditions and future expectations both weakened compared to previous months.

Decline in Sentiment

Analysts suggest that persistent inflation, higher borrowing costs, and uncertainty about job stability have dampened consumer sentiment. While spending remains relatively resilient, many households are showing signs of caution, particularly for non-essential purchases.

Expectations About the Future

Respondents expressed worries about both short-term income prospects and the potential for economic slowing in early 2025. Confidence indexes tracking expectations for the next six months slipped, reflecting fewer households anticipating favorable business or job conditions.

Market Reaction

Economists caution that a sustained drop in confidence could eventually weigh on retail sales and overall growth. However, some remain hopeful that steady employment and moderating inflation might stabilize sentiment going into the new year.

“Consumers remain wary about the economic outlook as higher costs continue to pressure household budgets,” said an analyst familiar with the report.

Author’s Summary

Consumer confidence dropped notably before the holidays, as Americans grew wary about inflation, job security, and the broader economy’s short-term direction.

more

TheStreet on MSN TheStreet on MSN — 2025-11-30

More News