The latest survey released by the World Federation of Large Enterprises on Tuesday, November 25, shows a significant drop in consumer confidence in the United States in November, falling to the lowest level in seven months, reflecting a growing pessimism among the public about the economic situation and future prospects.
According to a report by “The Hill,” in this survey conducted by the World Federation of Large Enterprises (also known as the Conference Board), the consumer confidence index for November plummeted from 95.5 in October to 88.7. This number is significantly below the economists’ expected 93.2 from the Dow Jones survey, with a decline of 6.8 points, the lowest reading since April this year when it was at 86 points. In comparison, consumer confidence in November 2024 had reached a high of 111.7, the highest level since July 2023.
The survey reveals that consumers are worried about both the current economic situation and future prospects. The index measuring consumers’ short-term outlook dropped sharply by 8.6 points to 63.2, while the present situation index reflecting the current conditions decreased by 4.3 points to 126.9.
The survey data was collected until November 18. Just five days prior, on November 13, the longest government shutdown in American history, lasting 43 days, had ended.
Dana Peterson, Chief Economist of the World Federation of Large Enterprises, commented on the survey data, stating that “consumers are significantly more pessimistic about business conditions in six months; expectations for the labor market conditions in mid-2026 remain negative; expectations of income growth have sharply contracted after six months of strong positive readings.”
Concerns about the job market are particularly prominent among the respondents. The survey data indicates that the proportion of respondents who believe that job positions are “plentiful” plummeted from 28.6% in October to 6%, a staggering decline. This data reflects the current employment atmosphere of “not hiring, not firing.” At the same time, the percentage of respondents who find jobs “hard to get” stands at 17.9%, slightly decreasing by 0.4 percentage points.
Data recently released by the Bureau of Labor Statistics showed that the unemployment rate in September reached 4.4%, increasing by 0.3% compared to 12 months prior. A report by the payroll processing company ADP also revealed that private enterprises eliminated an average of 13,500 job positions in the past four weeks.
Rising prices continue to impact consumer sentiment. As of September, the 12-month change in the consumer price index reached 3%, a 0.6% increase compared to September 2024. Food, energy, and electricity costs rose by 2.7%, 2.8%, and 5.1% over the past 12 months, respectively.
Survey results show that respondents predict an inflation rate of 4.8% one year from now, significantly higher than the Federal Reserve’s target of 2% and higher than the University of Michigan’s survey prediction of 4.5%.
It is noteworthy that despite the pessimism regarding the economic outlook, consumers express “very positive” expectations for the stock market.
The weak consumer confidence data has prompted several Federal Reserve officials to express support for further interest rate cuts. Market traders currently predict a high likelihood that the Federal Reserve will lower its key lending rate by a quarter percentage point in December.