Consumer Confidence Falls in December

On December 23, 2025, The Conference Board announced that its Consumer Confidence Index declined by 3.8 points in December to 89.1 (1985=100), from 92.9 in November. 

“Despite an upward revision in November related to the end of the shutdown, consumer confidence fell again in December and remained well below this year’s January peak. Four of five components of the overall index fell, while one was at a level signaling notable weakness,” said Dana M Peterson, Chief Economist, The Conference Board, in a statement.

Among demographic groups, on a six-month moving average basis, confidence dipped among all age groups in December, although consumers under 35 continued to be more confident than consumers age 35 and older. 

There were few generational differences, as confidence among all generations trended downward in the month, with only the Silent Generation becoming more hopeful. Millennials and Gen Z remained the most optimistic of all generations surveyed.

By income, confidence on a six-month moving average basis fell for nearly all brackets, except for those earning less than $15K and more than $125K. Still, consumers earning less than $15K remained the least optimistic among all income groups. 

“Consumers’ write-in responses on factors affecting the economy continued to be led by references to prices and inflation, tariffs and trade, and politics," said Peterson.

"However, December saw increases in mentions of immigration, war, and topics related to personal finances—including interest rates, taxes and income, banks, and insurance. The responses continued to skew pessimistic but less so than in November, potentially due to fewer negative comments about prices and inflation, politics, as well as a rebound in positive responses about interest rates. Notably, the Federal Reserve Board cut monetary policy rates on December 10 for a third time in 2025, which landed in the second half of the survey sample interval.”

Nonetheless, the share of consumers expecting interest rates to rise were on net higher, with a drop in the proportion expecting lower rates. Consumers’ median and average 12-month inflation expectations both retreated in December after an uptick in November. The balance of consumers’ expectations for stock prices twelve months from now—higher minus lower—was the most positive since January 2025.

Consumers appeared more cautious about plans for buying big-ticket items over the next six months. Consumers who said “yes” to buying big-ticket items ahead edged higher in December. However, the number of those saying “no” increased and “maybe” declined. Overall buying plans for autos dipped again in December.

On a six-month moving average basis, expectations for purchasing new cars continued to slip, but plans to buy used cars continued to climb. Homebuying expectations also ticked downward. Plans to buy household appliances all dipped, as did purchasing plans for PCs and laptops, as well as video game consoles. By contrast, future spending plans for smartphones, tablets, and digital cameras continued to trend upward on a six-month moving average basis. Used cars, TVs, and smartphones remained the most popular within their categories for future purchases.

In December, consumers’ planned spending on services over the next six months were little changed from November, but those saying “yes” to buying more services remained healthy. Month-over-month, anticipated spending on restaurants, streaming, personal care, and utilities picked up in December, while future purchases of other discretionary services categories softened.

The top categories for planned services spending over the next six months still included restaurants, bars, take-out; streaming, internet, mobile services; beauty and personal care; utilities; and healthcare. Vacation intentions continued to spiral downward in December. Plans for domestic travel over the next six months still exceed international vacation plans, but both types fell.

Present Situation

Consumers’ assessments of current business conditions turned mildly pessimistic in December.

• 18.7% of consumers said business conditions were “good,” down from 21.0% in November.
• 19.1% said business conditions were “bad,” up from 15.8%.

Consumers’ views of the labor market were also weaker in December.

• 26.7% of consumers said jobs were “plentiful,” down from 28.2% in November.
• 20.8% of consumers said jobs were “hard to get,” up from 20.1%.

Expectations Six Months Hence          

Consumers were moderately less pessimistic about future business conditions in December.

• 18.0% of consumers expected business conditions to improve, down from 18.1% in November.
• However, 21.8% expected business conditions to worsen, down from 25.8%.

Consumers were on net a bit more worried about the labor market outlook in December.

• 16.5% of consumers expected more jobs to be available, unchanged from November.
• 27.4% anticipated fewer jobs, up from 26.8%.

Consumers’ outlook for their income prospects was slightly less positive in December.

• • 18.4% of consumers expected their incomes to increase, up from 17.6% in November.
  • Meanwhile, 14.7% expected their incomes to decrease, up from 12.5%.