US consumer confidence report December 89.1 vs expected 91.0. Down from 92.9 last month

The Conference Board’s latest release confirms that US consumer confidence fell for the fifth consecutive month in December 2025. Despite a temporary reprieve following the end of the federal government shutdown, rising anxiety over jobs and a darkening business outlook have pushed a key recession indicator deeper into the danger zone.

The Headline Numbers

• Consumer Confidence Index: Declined to 89.1 in December versus expectations of 91.0. The current month was down from a revised 92.9 in November (was previously reported at 88.7).

• Present Situation Index: Plummeted by 9.5 points to 116.8, the sharpest drop in current sentiment as views on business conditions turned negative for the first time since September 2024.

• Expectations Index: Held steady at 70.7. Crucially, this gauge has tracked under the 80.0 threshold for 11 consecutive months, a level that historically signals an impending recession.

Details of the Consumer Confidence numbers for December from the Conference Board

Present Situation: A Mildly Pessimistic Turn

Consumers’ assessment of current conditions took a notable hit this month:

• Business Conditions: More consumers now view conditions as “bad” (19.1%) than “good” (18.7%).

• The Labor Market: The share of consumers saying jobs are “plentiful” fell to 26.7%, while those saying jobs are “hard to get” rose to 20.8%.

Expectations: Income and Job Worries Deepen

While the outlook for future business conditions improved slightly, the “human” side of the economy remains under pressure:

• Job Outlook: More consumers expect fewer jobs to be available (27.4%) compared to November.

• Income Stress: While 18.4% expect their income to increase, the percentage of those expecting a decrease also rose to 14.7%.

Demographic and Political Trends

The decline in confidence was nearly universal across the board:

• Generational Divide: Confidence dipped among all age groups. Only the Silent Generation showed increased hope, while Millennials and Gen Z remained the most optimistic despite trending downward.

• Income Brackets: Confidence fell for almost all brackets, with the exception of the lowest earners (under $15K) and highest earners (over $125K).

• Unity in Gloom: Confidence continued to fall among all political affiliations—Democrats, Republicans, and Independents alike.

Expert Analysis

“Despite an upward revision in November related to the end of the shutdown, consumer confidence fell again in December and remained well below this year’s January peak. Four of five components of the overall index fell, while one was at a level signaling notable weakness.”

— Dana M. Peterson, Chief Economist, The Conference Board.

This article was written by Greg Michalowski at investinglive.com.