Why US Consumers Just Became the Most Nervous They’ve Been in Months

Core Insights - Consumer confidence has declined for the fourth consecutive month, dropping 6.8 points to 88.7 in November, marking the lowest level since April [1][6] - The decline in consumer confidence is attributed to concerns over the labor market and economic expectations, particularly in light of a recent government shutdown and ongoing inflation [3][4][8] Consumer Sentiment - Consumers are entering the holiday season with a negative outlook, reflecting a "bah-humbug" sentiment as confidence reaches its lowest levels since April [1] - The Conference Board's survey indicates that consumer spending, a critical component of the U.S. economy, may be affected by these declining confidence levels [2] Labor Market Concerns - There are growing worries about the labor market, with expectations for job and income growth in 2026 being negatively impacted [4][7] - Despite job additions reported by the Bureau of Labor Statistics, the unemployment rate has risen to 4.4%, contributing to consumer anxiety [7] Economic Outlook - The near-term economic outlook remains in recessionary territory for the tenth consecutive month, with consumers expressing concerns about current business conditions and labor market opportunities [3][6] - The impact of the longest federal government shutdown on consumer confidence is evident, as the survey period extended beyond the end of the shutdown, limiting any immediate positive effects on sentiment [8]