Consumer confidence drops in December to lowest level since U.S. tariffs rolled out in April – PBS News
Consumer confidence drops in December to lowest level since U.S. tariffs rolled out in April
Economy – Dec 23, 2025 11:03 AM EST
WASHINGTON (AP) — Consumers were less confident in the economy in December as Americans grow anxious about high prices and the impact of President Donald Trump’s sweeping tariffs.
The Conference Board said Tuesday that its consumer confidence index fell 3.8 points to 89.1 in December from November’s upwardly revised reading of 92.9. That is close to 85.7 reading in April, when Trump rolled out his import taxes on U.S. trading partners.
A measure of Americans’ short-term expectations for their income, business conditions and the job market remained stable at 70.7, but still well below 80, the marker that can signal a recession ahead. It was the 11th consecutive month that reading has come in under 80.
Consumers’ assessments of their current economic situation tumbled 9.5 points to 116.8.
Write-in responses to the survey showed that prices and inflation remained consumers’ biggest concern, along with tariffs.
Perceptions of the job market also declined this month.
READ MORE: The economy is giving mixed signals. Here’s what experts say they mean
The conference board’s survey reported that 26.7% of consumers said jobs were “plentiful,” down from 28.2% in November. Also, 20.8% of consumers said jobs were “hard to get,” up from 20.1% last month.
Last week, the government reported that the U.S. economy gained a healthy 64,000 jobs in November but lost 105,000 in October. Notably, the unemployment rate rose to 4.6% last month, the highest since 2021.
The country’s labor market has been stuck in a “low hire, low fire” state, economists say, as businesses stand pat due to uncertainty over Trump’s tariffs and the lingering effects of elevated interest rates.
Since March, job creation has fallen to an average 35,000 a month, compared to 71,000 in the year ended in March.
Fed Chair Jerome Powell said recently that he suspects those numbers will be revised even lower.
Continue/Read Original Article Here: Consumer confidence drops in December to lowest level since U.S. tariffs rolled out in April | PBS News
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