U.S. Consumer Confidence Declines for Fifth Consecutive Month in December

The Conference Board reported on Tuesday that its Consumer Confidence Index declined for the fifth consecutive month in December, reaching 89.1, down from a revised 92.9 in November. Dana M. Peterson, Chief Economist at The Conference Board, noted that 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.

The Present Situation Index, which assesses current business and labor market conditions, dropped 9.5 points to 116.8. The Expectations Index, reflecting consumers' short-term outlook, remained steady at 70.7, marking the 11th consecutive month below the recession-indicating threshold of 80.

Survey responses highlighted that inflation and tariffs are major concerns for consumers. Perceptions of the job market also declined, with 26.7% of consumers stating jobs were "plentiful," down from 28.2% in November, and 20.8% indicating jobs were "hard to get," up from 20.1% the previous month.

Despite the decline in consumer confidence, the economy expanded at a 4.3% annual rate in the third quarter. However, economists anticipate a slowdown in the fourth quarter due to the government shutdown and potential reductions in consumer spending.