Consumer Sentiment Plummets Amid Rising Prices and Growing Concerns Over Employment

In November 2025, U.S. consumer confidence plunged to near record lows, signaling broad concerns about the economy, job stability, and persistent inflation. The University of Michigan’s final consumer sentiment reading fell to 51.0, marking a 4.8% drop from October’s 53.6 and

. Likewise, the Conference Board’s consumer confidence index declined to 88.7, its second-lowest point since April, down 6.8 points from October’s 95.5 . These figures highlight a worsening sentiment as high prices persist, job market perceptions remain weak, and political instability continues.

The University of Michigan’s current conditions index also dropped to a historic low of 51.1, with

. Inflation remains a major worry: Americans expect prices to rise 4.5% over the next year and 3.4% over the next five to ten years, a slight decrease from October’s 3.9% but still high . The Conference Board’s median inflation expectation for the coming year is 4.8%, down from 5.9% in October, yet still well above pre-pandemic norms.

Concerns about the job market are mounting. The Conference Board found that only 1% of respondents rated business conditions as “good” in November, a sharp drop from 20.7% in October, and just 6% described jobs as “plentiful,” compared to 28.6% the previous month

. The share of people expecting higher unemployment in the coming year reached 69%, according to the University of Michigan. At the same time, , indicating increasing challenges for those seeking work.

Political factors are adding to the economic uncertainty. , and only 15% of voters attribute economic improvements to his policies. His administration’s recent decision to lift tariffs on agricultural products such as coffee and bananas on consumer expenses. Despite these moves, worries about affordability remain, fueling Democratic advances in the November elections. Trump has shifted his focus to tax reductions and deregulation to enhance purchasing power, but faces obstacles in rallying a divided Republican base .

The economic fallout from this pessimism could be substantial. As households concentrate on necessities and postpone non-essential spending, consumer expenditures—the backbone of U.S. economic growth—may weaken. Jefferies economist Thomas Simons observed that, although spending and confidence have sometimes diverged, the risks of a downturn are increasing. The November government shutdown heightened these fears, and the 4.4% unemployment rate—the highest in almost four years—further undermined confidence.

Analysts point to the delicate relationship between inflation and wage increases. In September, average wages climbed 3.8% year-over-year, barely outpacing the 3% inflation rate, but disparities remain: the lowest-earning third of households saw just a 1% wage increase, while the top third gained 3.7%. This uneven recovery intensifies concerns about affordability, especially as lower-income Americans contend with rising grocery, rent, and tariff-driven costs.

With the 2026 midterm elections drawing near, both parties are under pressure to tackle these issues. Trump’s emphasis on tax cuts and deregulation is intended to counter Democratic arguments about affordability, but

. For now, Americans remain caught between high living costs and uncertain job prospects, with their confidence reflecting broader economic unease.