• Consumer confidence has fallen to a seven-month low. The Conference Board's Consumer Confidence Index dropped significantly in November, falling 6.8 points to 88.7, a figure that was below economists' forecasts. This decline in sentiment occurred amid concerns about inflation and the effects of a recent government shutdown.
• The outlook for the job market is deteriorating. According to the Conference Board's chief economist, expectations for the labor market are "decidedly negative." The survey reflects this, with the share of consumers describing jobs as "plentiful" plummeting from 28.6% in October to just 6% in November. This trend is supported by data from payroll firm ADP, which reported that private companies shed an average of 13,500 jobs over the past four weeks.
• Broader economic indicators are also trending downward. Write-in responses to the survey revealed consumer concerns extending beyond jobs to include prices, inflation, trade, and politics. This pessimism is not an isolated finding, as the University of Michigan’s consumer sentiment gauge also registered a drop in November.
How it may affect me
As a U.S. reader:
• A potential Federal Reserve interest rate cut could soon make it cheaper for you to borrow money for major purchases like homes or cars.
• Finding a job may become more challenging, as the share of consumers describing jobs as "plentiful" has dropped sharply, with some data showing job losses.
• Widespread pessimism about the economy could lead people to reduce their spending, which may slow down overall economic activity.
• The actual state of the economy is uncertain, as a recent government shutdown hampered data collection, making some economic reports outdated.
