U.S. consumer confidence slipped to 89.1 in December, the lowest level since the tariffs were rolled out in April, as prices and job prospects weigh heavily on households.
Consumer confidence falls
The Conference Board reported a 3.8-point drop from the revised 92.9 in November to 89.1 in December. The index is still well below the 85.7 level recorded in April when President Donald Trump announced import taxes on U.S. trading partners.
Job market concerns
Short-term expectations for income, business conditions and the job market remained at 70.7, the 11th consecutive month under the 80-point threshold that signals a potential recession. Consumer assessments of their current economic situation fell 9.5 points to 116.8.
Write-in responses highlighted prices, inflation and tariffs as the biggest worries. Job-market sentiment also slipped: 26.7% of respondents said jobs were “plentiful” compared with 28.2% in November, while 20.8% said jobs were “hard to get,” up from 20.1%.
Labor market snapshot
The government reported that the U.S. economy added 64,000 jobs in November but lost 105,000 in October, with the unemployment rate rising to 4.6%-the highest level since 2021. Economists note a “low hire, low fire” pattern, as businesses hold back amid tariff uncertainty and high interest rates. Since March, average monthly job creation has fallen to 35,000, compared with 71,000 in the year ending March. Fed Chair Jerome Powell recently suggested that these figures could be revised lower.
Tariff dividend proposal
During a Monday press Q&A, President Trump said, “I’ll pay Americans $2,000 dividends from tariff revenue.” Administration officials explained that the proposal has not yet been formally sent to the Senate.
Key Takeaways
- Consumer confidence dropped to 89.1, the lowest since April’s tariff announcement.
- Job-market optimism declined, with fewer people viewing jobs as plentiful.
- President Trump hinted at a $2,000 dividend from tariff revenue, though it has not been submitted to Congress.
The latest data underscore how tariffs, high prices and a cautious labor market are shaping consumer sentiment and economic outlook in the United States.
