Consumer Confidence Plummets to Lowest Level Since US Tariffs
Consumer confidence in December dropped to its lowest since US tariffs, due to declining job market perceptions and a rising unemployment rate.
Overview
Consumer confidence in the US dropped significantly in December, reaching its lowest point since the initial rollout of US tariffs.
The percentage of consumers reporting jobs as 'plentiful' decreased to 26.7%, while 20.8% reported difficulty finding employment.
The consumer confidence index fell 3.8 points to 89.1, reflecting a 9.5-point drop in consumers' assessments of their current economic situation.
The unemployment rate rose to 4.6%, the highest since 2021, and monthly job creation nearly halved to 35,000, impacting confidence.
Short-term expectations for income, business, and the job market remain below 80, signaling a potential recession, despite a slight increase in belief against a near-term recession.
Analysis
Center-leaning sources frame this story by consistently linking declining consumer confidence and economic anxiety to President Trump's tariffs and high prices. They emphasize negative economic indicators and expert opinions that attribute economic slowdowns to these policies, while qualifying any positive data with future pessimistic outlooks.
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FAQ
The Consumer Confidence Index declined by 3.8 points in December 2025 to 89.1 (1985=100), from a revised 92.9 in November.
History
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