US consumer confidence weakened in November, falling to its second-lowest reading since April as Americans grew more wary of elevated prices, sluggish job gains and the fallout of the prolonged government shutdown, according to an AP report.
The Conference Board said on Tuesday that its consumer confidence index dropped to 88.7 in November, down from an upwardly revised 95.5 in October. The latest reading reflects broad economic concerns across political lines and was “particularly sharp among independents,” the Board noted.
The decline followed a 43-day government shutdown that delayed crucial economic data, disrupted federal paychecks and slowed business activity. A separate government report earlier in the day showed retail sales softened in September, reinforcing expectations that the final quarter of the year could see a significant slowdown.
“We do not think that consumer spending is about to hit a cliff, as spending has decoupled from confidence, but risks to the downside are increasing,” said Thomas Simons, chief US economist at Jefferies.
Americans’ perceptions of the labour market deteriorated. The share of consumers calling jobs “plentiful” slipped to 27.6%, down from 28.6% in October and sharply lower than 37% in December. Those saying jobs were “hard to get” held at 17.9%, slightly below October’s 18.3% but well above 15.2% in September.
Inflation and affordability issues remained top of mind. “Consumers’ write-in responses… continued to be led by references to prices and inflation, tariffs and trade, and politics, with increased mentions of the federal government shutdown,” said Dana Peterson, chief economist at the Conference Board.
President Donald Trump’s sweeping tariffs earlier this year had already rattled markets and pushed up costs. The Board warned that sustained worries about prices could further dent household confidence.
Despite the downbeat sentiment, economists estimate the US economy likely grew at an annual rate of about 3% in the July–September quarter. But with the shutdown dragging on activity and weak hiring expected to persist, growth is forecast to cool notably in the final three months of the year.
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