Consumer Confidence Plummets Amid Economic Turmoil

Published by Davi on December 5, 2025

Consumer Confidence in the U.S. has plunged to its lowest level in 17 months, signaling growing concerns about the economic landscape.

This article delves into the latest findings on consumer sentiment, including the stark decline in perceptions of economic conditions and the significant drop in anticipated Christmas spending.

We will explore spending plans across different income brackets, the limited number of consumers intending to cut back, and the underlying factors contributing to this downturn, particularly the effects of a recent government shutdown and market fluctuations.

Insights into potential recovery prospects will also be discussed.

U.S. Consumer Confidence Hits 17-Month Low

In November 2025, U.S. consumer confidence hit a 17-month low, dropping to an index of -30. This marks the weakest reading since June 2024, reflecting a significant downturn in consumer sentiment towards the economy.

The troubling data reveals that only 21 percent of adults rated economic conditions as excellent or good, while 40 percent described them as terrible, and just 27 percent believed the economy is improving.

Here are the key figures for clarity: – Only 21 percent rated economic conditions as excellent or good – 40 percent considered them terrible – Just 27 percent believed the economy is improving

Shifts in Public Perception of Current Conditions

In November 2025, a contrast emerged in public perception of economic conditions compared to October.

Unfavorable views escalated as only 21% of adults rated conditions as ‘excellent’ or ‘good,’ down from an approximate 24% the previous month, indicating a decline in confidence.

Furthermore, responses indicating conditions were ‘terrible’ rose significantly, reflecting the growing unease amid the economic backdrop.

Transitioning from October to November, findings point to an eerily similar pattern of diminishing optimism and heightened economic distress.

Holiday Gift Spending Expectations by Income Level

Holiday shoppers in the U.S. are facing a significant shift in spending expectations as consumer economic confidence dips.

The average planned Christmas spending has now fallen to $778 in November, marking a year-over-year decline from last year’s $1,012. This decrease reflects a $229 drop compared to October.

High-income households expect to spend $1,230, which contrasts sharply with the $384 planned by low-income households.

Despite this downturn, the resilient consumer habits observed in the spending patterns according to Gallup’s Economic Confidence Report, hint at a potential recovery post-government shutdown as economic stability slowly returns.

Spending Intentions, Confidence Drivers, and Outlook

The consumer spending landscape in November 2025 presents a paradox.

Only 29% of consumers plan to reduce their holiday spending compared to last year, despite a noticeable decline in expected spending allocations.

This intriguing situation underscores a contrast with other statistical indicators, as the average estimate of spending has significantly dropped to $778, a decrease from last year’s $1,012. These figures reveal caution among consumers, though the behavior doesn’t align with the dramatic changes in economic sentiment, pointing to an intriguing dichotomy between perception and action.

The decline in consumer confidence can be attributed largely to the prolonged governmental shutdown and recent market volatility, which have both played substantial roles in weakening sentiment.

According to Fortune’s coverage, the shutdown led to significant economic uncertainty, elevating stress among consumers.

However, there is an optimistic outlook on the horizon as the government has resumed operations.

With the end of political gridlock, markets may find more stability and consumer confidence could see a rebound as the external pressure eases.

Thus, while hurdles have challenged the consumer psyche, the potential for recovery remains within reach.

Consumer Confidence remains fragile as the effects of economic challenges linger.

However, with the government shutdown now behind us, there may be hope for a rebound in sentiment and spending as consumers adjust their perspectives on the economy.