American consumers grew increasingly uneasy about the economy in November, with confidence falling to its lowest level in seven months. New data from the Conference Board shows a broad pullback in sentiment as concerns about hiring, inflation and political uncertainty weigh on households heading into 2026. The latest figures also align with other national surveys pointing to weakening public optimism and a cooling job market.
Index Readings Show Broad Weakness
The Consumer Confidence Index fell to 88.7 in November, a decline of 6.8 points and well below the expected 93.2. The expectations index dropped sharply to 63.2, while the present situation index slipped to 126.9. Chief economist Dana Peterson said consumers were “notably more pessimistic” about business conditions over the next six months, and expectations for income growth in 2026 have deteriorated after half a year of strong readings.
Labor Market Concerns Intensify
Job market perceptions weakened considerably. Only 6% of respondents said jobs were “plentiful,” down sharply from 28.6% in October. Meanwhile, 17.9% said jobs were “hard to get,” a slight decrease but still reflective of the current “no hire, no fire” environment. The findings echo ADP data released the same day, which showed private employers cut an average of 13,500 jobs over the past four weeks. The Conference Board results also mirror the University of Michigan’s sentiment index, which fell 4.9% in November and is down 29% year over year.
Inflation, Politics and Shutdown Concerns
Consumers continued to cite inflation, tariffs, political tensions and the recently ended federal government shutdown as key factors weighing on economic views. Inflation expectations rose significantly, with the survey showing a one year outlook of 4.8%, far above the Federal Reserve’s target of 2%. Respondents nonetheless expressed “strongly positive” expectations for stock market performance in the coming year.
Policy Outlook and Economic Impact
The slide in confidence comes as several Federal Reserve officials have publicly backed the need for additional interest rate cuts. Markets now anticipate another quarter point rate reduction in December. Ongoing delays in economic data caused by the shutdown have limited fresh government reporting, but early indicators show sentiment weakening across income and political groups. Economists warn that declining consumer confidence could signal a broader slowdown if the trend persists into early 2026.