US Consumer Confidence Slips Sharply in December as Economic Worries Multiply

23 December 2025

People walk past small businesses in Doylestown, Pa., Nov. 4, 2021.

In what economists and everyday Americans alike are describing as a sobering end to the year, U.S. consumer confidence weakened noticeably in December 2025, signaling rising anxiety about the economy and personal financial stability. According to the latest data from The Conference Board, the headline consumer confidence index fell by 3.8 points to 89.1, undershooting forecasts and extending a decline that has now become a persistent theme throughout the year. The drop reflects growing unease about jobs, income, inflation, trade tensions and a host of other concerns that are beginning to weigh on public sentiment and potentially on future spending trends.

For months, Americans have been navigating an economy that, on the surface, shows signs of resilience. Gross domestic product expanded, and some sectors continued to post healthy gains. Yet these figures have not translated into confidence among households, many of whom are feeling the pinch of higher costs for essentials and uncertainty about what comes next. What might seem like abstract economic data to some translates into very real worries for workers who are trying to make ends meet. As the index slipped below expectations, it raised questions about how comfortable consumers will feel opening their wallets in the months ahead.

The Conference Board’s report offered insight into why sentiment has deteriorated. Consumers’ own descriptions of the challenges they see ahead were dominated by familiar anxieties. Prices and inflation remain front of mind, with many respondents pointing to the persistent costs of goods and services as a source of stress. Additional concerns included tariffs and trade issues that have fueled unpredictability in markets, as well as ongoing political debates that seem to touch nearly every corner of public life. Notably, write-in responses also mentioned immigration, war and personal financial worries related to interest rates, taxes, income and banking. These multifaceted concerns suggest that confidence is being shaped not just by economic fundamentals but by broader social and geopolitical distractions that residents feel could impact their futures.

Analysts watching the confidence data stressed that the implications of such a decline are far-reaching. Consumer confidence is often viewed as a bellwether for spending, and in the United States, consumer expenditures account for a significant portion of overall economic activity. When confidence dips, it can presage a pullback in consumption, which in turn can slow growth. This effect can be particularly pronounced when households start cutting back on big-ticket items like new cars or homes, purchases that are often financed over time and depend heavily on positive economic sentiment. For many economists, the December data reinforces a narrative that had been developing over recent months: that while headline economic growth might be robust, the undercurrents of consumer attitudes are far more fragile.

To put the decline in perspective, it is worth noting that the consumer confidence index had been elevated earlier in the year but has trended downward for much of 2025. Some of this movement reflects broader global and national stresses, including the lingering aftereffects of a protracted government shutdown earlier in the fall, which disrupted data collection and contributed to uncertainty in labor markets. Although certain employment figures have shown strength at times, the public’s perception of job availability has cooled; fewer consumers now describe jobs as plentiful, and more believe that finding work could be difficult. This shift in sentiment about employment conditions underpins a deeper concern about economic stability that numbers alone cannot fully capture.

What makes the current moment particularly notable is the juxtaposition between measured economic indicators and public perception. Reports indicate robust GDP growth in the third quarter and stock market performance that often signals investor confidence. Yet consumers are living in a reality where wage gains may not keep pace with rising costs, and where the broader impacts of policy decisions, such as tariffs, filter through the prices they see on store shelves. This disconnect between macroeconomic data and the lived experience of households creates a tension that is now evident in the confidence readings.

Another dimension of the confidence figures is their potential political implications. Consumer sentiment can influence not just economic behavior but also electoral attitudes and public moods toward leadership. When people feel uncertain about their economic prospects, it can shape views on policy and governance. As Americans head into future months, their perceptions of taxes, inflation, job prospects and personal financial security may play roles in shaping the national conversation.

Despite the weakening outlook, there were still pockets of resilience within the data. Expectations for future personal finances and some measures of confidence about income growth showed that not all consumers have succumbed to pessimism. Younger demographics, in particular, have at times displayed a more positive outlook than older age groups, even as overall confidence levels declined. While these nuances do not fully offset the broader downward trend, they underscore the complexity of consumer sentiment and the fact that American households are not monolithic in how they perceive economic conditions.

As 2025 draws to a close, the deterioration in consumer confidence reflects a moment of heightened caution among U.S. households. Whether this translates into reduced spending in the coming year remains to be seen, but for now it stands as a reminder that the economy is more than just numbers on a chart. It is shaped by perceptions, expectations and the everyday realities of millions of people watching their finances and futures with a wary eye.