US consumer sentiment took a dive in November, with the Conference Board reporting a pullback across nearly every measure of its closely watched index.
The overall Consumer Confidence Index dropped to 88.7, down sharply from 95.5 in October and marking its lowest point since April.
The Present Situation Index, which tracks how Americans view current business conditions and the job market, slipped more than four points to 126.9 while the Expectations Index, measuring consumers’ six month outlook for business, income and jobs, fell around eight points to 63.2. That forward-looking index has now remained below the recession-warning threshold of 80 for ten consecutive months.
“Consumer confidence tumbled in November to its lowest level since April after moving sideways for several months. All five components of the overall index flagged or remained weak,” says chief economist Dana M. Peterson. “The Present Situation Index dipped as consumers were less sanguine about current business and labor market conditions. The labour market differential — the share of consumers who say jobs are ‘plentiful’ minus the share saying ‘hard to get’ — dipped again in November after a brief respite in October from its year-to-date decline.”
Confidence improved modestly among adults under 35 but fell for all groups 35 and older, especially those 55+. Across income levels, sentiment declined nearly across the board, with only the under-$15,000 bracket ticking slightly upward (while remaining the least optimistic group).
Inflation expectations edged up to a median 4.8% for the year ahead, while roughly half of consumers expect higher interest rates, and fewer anticipate rate cuts, reversing earlier optimism.
Americans also feel worse about their personal finances, both now and in the near future. Current-situation assessments dropped back toward levels last seen during the economic apprehension of August 2024.
Spending plans weakened too with intentions to purchase cars, appliances and electronics lower, while interest in most services declined. Only a few categories held steady or rose slightly, such as visits to museums and historical sites and spending on childcare and education. Dining out, streaming and personal care remain popular spending intentions, but healthcare surged to the number-two spot amid concerns tied to the shutdown and insurance costs.
Travel plans also softened, with both domestic and international trip intentions falling, mirroring reduced plans for hotel stays and airfare.
Fewer consumers said current business conditions were “good,” while more described them as “bad.” Views on the job market cooled as well: the share saying jobs are “plentiful” declined, and those reporting jobs are “hard to get” shifted only slightly.
Looking ahead six months, expectations deteriorated sharply with only 15.9% foreseeing improving business conditions, while more than a quarter expect things to worsen. Consumers were similarly downbeat about future job availability and income prospects.
Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.
UBS has a history of costly litigation stemming from the sale of volatile investment products.
New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.
Advisors can help “separate the math from the emotion” when it comes to retirement, says JPMorgan’s Michael Conrath.
New product gives advisors a structured way to introduce themselves to clients' heirs before assets change hands.
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
Ultra-high-net-worth investors aren’t retreating from risk. They're redefining it, balancing safety with selective conviction
