Consumer Confidence Plummets Amid Economic Uncertainties By: Stock Market Charlie

A man wearing a denim jacket and gold chains stands in a store aisle, with shelves lined with various products in the background.

Consumers are approaching the holiday season with a sense of pessimism, as their confidence has declined to its lowest point since April.

A monthly survey by The Conference Board revealed a significant drop in consumer confidence, decreasing by 6.8 points to 88.7 in November, marking the lowest level recorded since April.

Key Takeaways

• The Conference Board’s Consumer Confidence survey for November reached its lowest levels since April, influenced by concerns about the labor market and economic uncertainties.

• For the tenth consecutive month, consumers' short-term economic outlook remained within recessionary levels.

“It is unsurprising that confidence continues to decline following a record-long U.S. government shutdown and the ongoing impact of inflation on consumers,” wrote Bret Kenwell, U.S. investment and options analyst at eToro U.S. “Reports of airport disruptions and concerns about the labor market have certainly not alleviated consumers’ apprehensions over the past month.”

Broad Declines Reflect Fears over Weakening Job Market

Consumers have expressed concerns about current business and labor market opportunities, while expectations regarding the near-term economy have remained in recessionary territory for the tenth consecutive month.

“Confidence in business conditions for 2026 has been undermined, affecting projections for job and income growth next year,” wrote Nationwide senior economist Ben Ayers. “Although spending has remained resilient in 2025 despite deteriorating survey results, many consumers may have reached their threshold as rising prices and labor market concerns are likely to reduce spending plans, at least in the short term.”

The Conference Board’s report reflects declines in a similar consumer survey from the University of Michigan. However, with its emphasis on the labor market, the Conference Board report indicates that consumers are increasingly worried about the state of the labor market.

The labor market concerns remain despite the latest report from the Bureau of Labor Statistics, which indicated that the economy added jobs in September, yet the unemployment rate increased to 4.4%.

"Expectations for labor market conditions by mid-2026 remain decidedly negative, and the outlook for increased household incomes has significantly diminished after six months of strong positive readings," stated Dana Peterson, chief economist at The Conference Board, in a news release.

The government shutdown also impacted consumer confidence, even though the survey period extended beyond the conclusion of the work stoppage.

"The longest federal government shutdown on record affected sentiments," wrote Wells Fargo economists Tim Quinlan and Shannon Grein. "Although the shutdown ended on November 12, the survey only extended through November 18, so the reopening of the government didn't significantly boost optimism and may improve sentiments more in December."

Best Regards,

Stock Market Charlie