Consumer Confidence Crumbles as Prices Spike and Job Fears Mount

U.S. consumer confidence plummeted to one of its lowest levels in November 2025, reflecting widespread pessimism about economic conditions, job security, and inflation. The University of Michigan's final consumer sentiment index dropped to 51.0, a 4.8% decline from October's 53.6 and a stark 29.0% year-over-year fall from 71.8 in November 2024. Similarly, the Conference Board's consumer confidence index fell to 88.7, the second-lowest level since April, down 6.8 points from October's 95.5 according to analysis. These readings underscore a deteriorating outlook amid persistent high prices, weak labor market perceptions, and political uncertainty.

The current conditions index from the University of Michigan fell to a record low of 51.1, with consumers' personal financial outlooks the most pessimistic since 2009. Inflation expectations remain a key concern: Americans anticipate a 4.5% annual price increase over the next year and 3.4% over five to ten years, down slightly from 3.9% in October but still elevated according to the latest data. The Conference Board reported median inflation expectations of 4.8% for the year ahead, a drop from 5.9% in October but well above pre-pandemic levels .

Labor market anxieties are intensifying. The Conference Board noted that only 1% of consumers deemed business conditions "good" in November, down from 20.7% in October, while just 6% called jobs "plentiful," compared to 28.6% the prior month according to November survey results. The proportion of consumers expecting unemployment to rise in the next year reached 69%, according to the University of Michigan . Meanwhile, continued unemployment insurance claims hit a four-year high, signaling growing difficulty for job seekers.

Political dynamics further cloud the economic outlook. President Donald Trump's approval rating has dipped to 41%, with only 15% of voters crediting his policies for economic improvement. His administration's recent rollback of tariffs on agricultural goods like coffee and bananas reflects a tacit acknowledgment of their impact on consumer costs. However, these measures have not alleviated concerns about affordability, a key issue driving Democratic gains in November elections. Trump has shifted to emphasizing tax cuts and deregulation to boost purchasing power but faces challenges uniting a fractured GOP base according to recent analysis.

The economic implications of this pessimism are significant. Consumer spending, a cornerstone of U.S. growth, may weaken as households prioritize essentials and delay discretionary purchases. Jefferies economist Thomas Simons noted that while spending has historically decoupled from confidence, downside risks are rising . The government shutdown in November exacerbated anxieties, with 4.4% unemployment-the highest in nearly four years-further eroding trust .

Experts highlight the precarious balance between inflation and wage growth. Average wages rose 3.8% year-over-year in September, barely outpacing the 3% inflation rate, but disparities persist: the poorest third of households saw wage growth of just 1%, while the wealthiest third gained 3.7% . This uneven recovery fuels affordability concerns, particularly as lower-income consumers face rising costs for groceries, rent, and tariff-impacted goods .

With the 2026 midterm elections approaching, both parties face pressure to address these challenges. Trump's focus on tax cuts and deregulation aims to counter Democratic messaging on affordability, but his waning grip on the GOP complicates legislative prospects. For now, consumers remain trapped in a cycle of high prices and uncertain job prospects, their confidence serving as a barometer of a broader economic malaise.

University of Michigan survey: U.S. consumer confidence falls to one of historic lows https://www.bitget.com/news/detail/12560605076460

US consumer confidence deteriorates in November https://economictimes.indiatimes.com/news/international/global-trends/us-consumer-confidence-in-deteriorates-in-november/articleshow/125568046.cms

U.S. Consumer Confidence Weakens on Labor-Market Concerns https://www.marketwatch.com-story/u-s-consumer-confidence-weakens-on-labor-market-concerns-11ae22ed

Consumer Sentiment, An Important Indicator Of The Economy, Falls More https://www.forbes.com/sites/eriksherman/2025/11/22/consumer-sentiment-an-important-indicator-of-the-economy-falls-more/

US consumer confidence tanks in November as Americans see more financial pain ahead https://finance.yahoo.com/news/us-consumer-confidence-tanks-in-november-as-americans-see-more-financial-pain-ahead-152417642.html

Consumer confidence slides as Americans grow wary of ... https://www.seattletimes.com/business/consumer-confidence-slides-as-americans-grow-wary-of-high-costs-and-sluggish-job-gains/

Trump's Grip on Party He Remade Weakens After String of Setbacks https://www.bloomberg.com/news/articles/2025-11-22/trump-s-grip-on-party-he-remade-weakens-after-string-of-setbacks

Trump faces same reality as Biden: Americans despise higher prices https://www.reuters.com/world/us/trump-faces-same-reality-biden-americans-despise-higher-prices-2025-11-22/