Americans’ confidence in the U.S. economy weakened further in December, as persistent inflation and President Donald Trump’s tariff policies deepened public anxiety about the nation’s financial outlook.
According to data released Tuesday, December 23, 2025, by the Conference Board, the consumer confidence index declined by 3.8 points to 89.1, marking the fifth consecutive monthly drop and nearing April’s 85.7 reading—the month Trump first imposed broad import taxes on major trading partners. The November index was revised upward to 92.9.
While the index measuring short-term expectations for income, business conditions, and the job market held steady at 70.7, it remained below the 80-point benchmark often viewed as a warning signal for potential recession. It was the 11th straight month that the measure stayed under that threshold.
Consumers’ assessment of their current economic situation also deteriorated sharply, plunging 9.5 points to 116.8, the largest single-month drop this year.
Tariffs and Inflation Remain Top Concerns
Open-ended responses from survey participants pointed to inflation and high prices as their biggest worries, alongside the economic impact of the administration’s tariff policies. This sentiment comes despite repeated assertions by President Trump that “inflation is a hoax.”
Perceptions of the job market also weakened. The share of respondents who said “jobs are plentiful” fell to 26.7% from 28.2% in November, while those who said “jobs are hard to get” rose to 20.8%, up slightly from 20.1% the previous month.
Labor Market Losing Momentum
The latest government data showed that the U.S. economy added 64,000 jobs in November after losing 105,000 in October. The unemployment rate edged up to 4.6%, the highest level since 2021.
Economists describe the current labor environment as a “low hire, low fire” market, with employers hesitant to expand amid uncertainty over tariffs and lingering effects of elevated Federal Reserve interest rates.
Since March, average monthly job growth has slowed to 35,000, down sharply from 71,000 in the prior year. Federal Reserve Chair Jerome Powell recently suggested that those figures could be revised even lower.
Economic Outlook Mixed
Despite growing unease, the share of consumers who believe a recession is unlikely in the coming year increased slightly in December, indicating cautious optimism.
However, views on personal finances painted a more complex picture. Respondents said their current household financial situation turned negative for the first time in nearly four years, while expectations about their future finances were the most upbeat since January.
Meanwhile, the government reported that the U.S. economy grew at a 4.3% annual rate in the third quarter, but analysts warn that the pace is unlikely to continue. Economists expect a slower fourth quarter, citing the impact of the recent government shutdown and signs of a consumer spending pullback.
A Fragile Confidence
The December data underscores the fragile mood among American households as trade policies, inflation pressures, and political uncertainty weigh on economic sentiment. For many consumers, optimism about the future persists—but confidence in the present remains on shaky ground.
