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Key Takeaways
- The Conference Board’s Consumer Confidence survey for November fell to its lowest levels since April as labor market fears and job market worries weighed on public perceptions of the economy.
- Consumers’ near-term economic outlook remained in recessionary territory for the 10th straight month.
Consumers have a bah-humbug feeling entering the holiday season, as their confidence has dropped to its lowest levels since April.
A monthly survey conducted by The Conference Board showed that consumer confidence moved sharply lower, falling 6.8 points to 88.7 in November, its lowest level since April.
Why This Matters for You
Consumer confidence reflects how people generally feel about the economy and the labor market, which can influence their spending plans. Consumer spending is a major pillar of the U.S. economy.
“It’s not too surprising that confidence continues to wane, following a record-long U.S. government shutdown and as inflation continues to weigh on consumers,” wrote Bret Kenwell, U.S. investment and options analyst at eToro U,S. “Reports of airport chaos and worries about the labor market certainly didn’t help to ease consumers’ concerns over the past month.”
Broad Declines Reflect Fears over Weakening Job Market
Consumers expressed worries about current business and labor market opportunities, while expectations about the near-term economy remained in recessionary territory for the 10th straight month.
“Confidence in business conditions for 2026 has been shaken, weighing on estimates for job and income growth next year,” wrote Nationwide senior economist Ben Ayers. “While spending has held up over 2025 despite worsening survey readings, many consumers may have reached their limit as rising prices and labor market concerns cut spending plans, at least for the near-term.”
The Conference Board’s report mirrors declines in a similar consumer survey from the University of Michigan. However, with its focus on the labor market, the Conference Board report indicates that consumers are growing increasingly concerned about the state of the labor market.
The labor market concerns persist despite the most recent report from the Bureau of Labor Statistics, which showed that the economy added jobs in September, even as the unemployment rate rose to 4.4%.
“Mid-2026 expectations for labor market conditions remained decidedly negative, and expectations for increased household incomes shrunk dramatically, after six months of strongly positive readings,” said Dana Peterson, chief economist at The Conference Board, in a news release.
The government shutdown also weighed on consumer confidence, despite the survey period extending past the end of the work stoppage.
“The longest federal government shutdown on record weighed on moods,” wrote Wells Fargo economists Tim Quinlan and Shannon Grein. “While the shutdown ended Nov. 12, the survey only went through Nov. 18, so the reopening of the government didn’t provide much boost to optimism and may lift moods more in December.”
