WASHINGTON (AP) — U.S. consumers had a sharp drop in confidence in the economy in November as a result. government shutdown, employment is weak and stubborn inflation.
The Conference Board said Tuesday that its consumer confidence index fell to 88.7 in November from an upwardly revised 95.5 in October, the lowest reading since President Donald Trump took office in April. announced significant tariffs That caused the stock market to crash.
The numbers suggest Americans are increasingly wary of high costs and expenses. Employment growth is slowthe survey found that perceptions of the labor market have worsened. The decline in confidence could pose political problems for President Trump and Republicans in Congress, the Conference Board said, as bleak views of the economy are felt across all political parties and are particularly acute among independents.
A government report early Tuesday showed retail sales September slowed down After a healthy dose of reading over the summer. Economists are predicting healthy growth in the July-September period, but many expect the final three months of the year to be significantly weaker. of shutdown.
Consumers who lack confidence may spend less, but the relationship is not always clear. Consumer spending has held up in recent years, even though available data suggests growing anxiety.
“We don’t think consumer spending is about to hit a cliff because of the disconnect between consumption and confidence, but downside risks are increasing,” said Thomas Simmons, chief U.S. economist at investment bank Jefferies.
The percentage of consumers who said jobs were “plentiful” was 27.6% in November, down from 28.6% the previous month. This was a significant drop from 37% in December.
At the same time, 17.9% said it was “difficult to find” a job, slightly lower than the 18.3% who said so in October. This figure was up from 15.2% in September. Economists view employment status figures as reliable predictors of employment and unemployment rates.
Americans remain concerned about rising costs, adding to concerns about affordability, which has been a major issue in the United States. elections earlier this month.
“Consumer written responses regarding factors affecting the economy continue to be led by mentions of prices and inflation, tariffs and trade, politics, and increased mentions of the federal government shutdown,” said Dana Peterson, chief economist at the Conference Board. The closure ended on November 12th.
Economists say economic growth in the July-September period will likely remain steady at an annualized rate of about 3%. But growth is likely to slow in the final three months of the year, largely due to pay cuts for federal workers, contract interruptions and disruptions to air travel due to the government shutdown.
The Conference Board’s investigation was conducted through Nov. 18, about five days after the shutdown ended.
