U.S. Consumer Confidence Drops Sharply in December

Economic outlook dims as consumer expectations for income, business, and jobs fall significantly, raising recession concerns.

The Conference Board's consumer confidence index fell to 104.7 in December, down from 112.8 in November, reversing recent gains.
A sub-index measuring short-term expectations for income, business, and the job market dropped over 13 points to 81.1, nearing the recession signal threshold of 80.
Despite solid economic growth of 3.1% last quarter, pessimism about future business conditions and incomes has risen among consumers.
Mentions of tariffs and their potential inflationary impact were cited as key factors influencing consumer sentiment this month.
While holiday spending remained strong in November, the decline in confidence could signal challenges for sustained economic momentum in 2025.