U.S. consumer mood has darkened sharply heading into the holidays, with fresh data showing the biggest monthly drop in confidence this year.
The widely watched Consumer Confidence Index crashed to 88.7 in November down from a revised 95.5 in October and far below every economist’s forecast.
What Spooked Households
Three issues dominated open-ended responses from thousands of Americans:
- Lingering Shutdown Damage – Even though federal workers are back, the recent government closure has left families rattled. Political chaos now ranks among the top economic fears.
- Relentless Price Pressure – Inflation remains public enemy number one. Grocery bills, rent, and energy costs topped the complaint list yet again.
- Job Jitters – Worries about layoffs and wage growth, while slightly lower than last month, still loom large.
Trade policy and tariffs also climbed the worry chart as President Trump’s second term approaches.
From Cautious to Pessimistic
Survey comments turned noticeably gloomier. Words like “uncertain,” “scary,” and “unstable” appeared far more often than in October.
Analysts say the sudden plunge signals households are bracing for tougher times cutting spending plans and stockpiling caution instead of holiday cheer.
With Black Friday just days away, retailers are now staring at a consumer base that feels poorer and more anxious than at any point in 2025.
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