U.S. Consumer Confidence Falls to 89.1, Fifth Monthly Drop

The Conference Board’s Consumer Confidence Index fell 3.8 points in December to 89.1, the group said on Dec. 23, 2025, extending a five month slide that has eroded gains recorded earlier this year. The decline was driven primarily by a sharp deterioration in consumers’ assessment of current conditions, while expectations about the year ahead remained muted.

The Present Situation Index plunged to 116.8 in December from 126.3 in November, underscoring consumers’ worsening views of the labor market and household finances. The Expectations Index held steady at 70.7, leaving the overall reading well below this year’s January peak and close to the April low of 85.7 that followed the announcement of tariffs on multiple trading partners.

The Conference Board revised November’s reading upward to 92.9 from an initially reported 88.7 after collecting additional survey responses following the end of the federal government shutdown, which ran from Oct. 1 to Nov. 12. Economists polled by Reuters had forecast the index at 91.0 for December while another survey cited by market outlets expected a rise to 91.9, but the Conference Board’s published figures are the definitive data for the month.

Perceptions of the labor market weakened in the survey. The share of consumers saying jobs were plentiful fell to 26.7 percent from 28.2 percent in November, while those saying jobs were hard to get rose to 20.8 percent from 20.1 percent. Write in responses collected by the Conference Board continued to focus on prices and inflation, tariffs and trade, and politics, with increased mentions in December of immigration, war, and personal finance topics including interest rates, taxes, income, banks and insurance.

“Despite an upward revision in November related to the end of the shutdown, consumer confidence fell again in December and remained well below this year’s January peak. Four of five components of the overall index fell, while one was at a level signaling notable weakness,” said Dana M. Peterson, Chief Economist at The Conference Board.

For markets and policymakers the data raise clear questions. Retailers and services firms that rely on household spending could face a softer demand backdrop after a strong third quarter surge in consumption, and investors will watch incoming sales and hiring data for confirmation of a slowdown. The pronounced drop in the Present Situation measure suggests current spending may be more vulnerable than forward looking intentions imply, which could translate into slower GDP growth in the near term.

On the policy front, central bankers are likely to view the decline in confidence as one of several indicators pointing to easing demand pressures, though the Conference Board’s persistent reports of price concerns complicate the narrative. Tariff related uncertainty and political issues that show up in consumer write ins may blunt the effectiveness of monetary or fiscal measures aimed at bolstering sentiment.

The five month sequence of declines signals a shift in the consumer mood as households enter 2026, with the balance of downside risks tied to labor market resilience, inflation persistence and policy responses to trade and political uncertainty.