American consumer confidence has suffered a significant blow, dropping sharply in November as households grow increasingly anxious about persistent high costs and a softening labour market.
A Sharp Decline in Economic Sentiment
The Conference Board reported on Tuesday 25 November 2025 that its key consumer confidence index fell to 88.7 in November, a substantial drop from an upwardly revised October reading of 95.5.
This marks the second-lowest reading since April, a period when former President Donald Trump's announcement of sweeping tariffs triggered a stock market plunge. The survey indicates that perceptions of the labour market have notably worsened, with Americans becoming more wary of sluggish job gains and elevated living costs.
Political Fallout and Economic Indicators
The dimming economic outlook presents potential political challenges for Trump and Congressional Republicans. The Conference Board noted that this pessimistic shift was observed across all political affiliations and was particularly pronounced among independent voters.
This sentiment was echoed in earlier government data showing that retail sales slowed in September following stronger summer performance. While economists predict healthy growth of around 3% for the July-September quarter, many anticipate a much weaker final quarter, largely attributed to the recent federal government shutdown.
Thomas Simons, chief US economist at investment bank Jefferies, commented: "We do not think that consumer spending is about to hit a cliff, as spending has decoupled from confidence, but risks to the downside are increasing."
Labour Market Perceptions Worsen
The survey revealed a clear deterioration in how Americans view job availability. The proportion of consumers stating that jobs are "plentiful" declined to 27.6% in November, down from 28.6% the previous month and sharply lower than the 37% recorded in December.
Conversely, 17.9% of respondents said jobs are "hard to get," slightly below October's 18.3% but notably higher than September's 15.2%. Economists consider these figures reliable predictors of future hiring trends and unemployment rates.
Dana Peterson, chief economist at The Conference Board, stated: "Consumers' write-in responses pertaining to factors affecting the economy continued to be led by references to prices and inflation, tariffs and trade, and politics, with increased mentions of the federal government shutdown." The shutdown concluded on 12 November.
The combination of affordability concerns, which played a key role in recent elections, and the economic disruption caused by the shutdown—which cut pay for federal workers, disrupted contracts, and interrupted air travel—continues to weigh heavily on consumer sentiment as the year approaches its close.
