Consumer confidence drops as election boost fades [View all]

Source: Axios

9 hours ago


American consumers are not feeling the holiday cheer: concerns about what's ahead for the economy shot up as tariffs loom, according to a barometer of consumer confidence released on Monday.

Why it matters: The post-election bump in consumer confidence in November now looks like a blip, at least by one measure.

Long-running economic pessimism lives on despite solid economic conditions — a sign the next administration might see consumer moods at odds with economic indicators

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What they're saying: "Compared to last month, consumers in December were substantially less optimistic about future business conditions and incomes," says Dana Peterson, chief economist at the Conference Board, the group that has measured consumer confidence for decades.

By the numbers: The Conference Board's consumer confidence index fell by 8.1 points this month, reversing the prior two months' gains and remaining at the somewhat depressed level that has prevailed in the past two years.

December's drop was overwhelmingly a result of more pessimism about income, business and labor market prospects in the months ahead.

A sub-index that measures consumer expectations fell almost 13 points last month alone, "just above the threshold of 80 that usually signals a recession ahead," the Conference Board said in a release.

Read more: https://www.axios.com/2024/12/23/consumer-confidence-trump-economy