Post by : Badri Ariffin

In November, U.S. consumer confidence took a notable hit as the effects of the extended federal government shutdown, persistent inflation, and slowing job growth weighed heavily on Americans' outlook. The most recent report from the Conference Board reveals that sentiment has fallen to its lowest level since April, marking a considerable decline from earlier year optimism.

The consumer confidence index decreased to 88.7, down from a revised 95.5 in October. This decline was observed just weeks after the government shutdown ended on November 12, with households clearly reassessing their financial situations and cost of living.

Survey results highlighted increasing strain, as fewer Americans regarded jobs as “plentiful,” dropping to 27.6% from 28.6% the previous month—a stark contrast to 37% in December last year. Simultaneously, while the percentage of those identifying jobs as “hard to get” remained steady, the overall sentiment denotes a labor market that feels less stable to many workers.

Concerns over rising living expenses were evident, echoing the affordability challenges faced during this month's elections. Consumers expressed worries about inflated prices—from groceries to housing—pressuring their budgets. Many respondents also voiced frustrations regarding tariffs, political tensions, and the shutdown, which interrupted paychecks and impacted federal services and travel.

Earlier economic indicators paint a mixed picture; while retail sales showed robust growth over the summer, there was a slowdown in September—indicating consumers may be tightening their belts. Economists continue to forecast a solid growth rate of around 3% for the July-September quarter, yet many expect a marked slowdown in the final quarter of the year as shutdown repercussions unfold.

Despite the prevailing negative sentiment, spending habits have not yet plummeted. Historical patterns reveal that Americans can maintain spending even amid anxiety, although the risks to that resilience are escalating.

The Conference Board’s survey, conducted through November 18, captures a nation grappling with past momentum against emerging economic uncertainties and questioning if the future will offer relief or further challenges.

#Business News #Economy