Why American consumers have been more nervous for months

Consumers are feeling overwhelmed heading into the holiday season, with confidence falling to its lowest levels since April.

A monthly survey by the Conference Board showed that consumer confidence fell sharply, falling 6.8 points to 88.7 in November, its lowest level since April.

“It is not very surprising that confidence continues to decline, in the wake of a record US government shutdown, and with inflation continuing to weigh on consumers,” wrote Brett Kenwell, US Investment and Options Analyst at eToro U,S. “Reports of chaos at airports and concerns about the labor market have certainly not helped ease consumer concerns over the past month.”

The broad declines reflect concerns about a weak labor market

Consumers expressed concern about current business and labor market opportunities, while near-term expectations for the economy remained in recession territory for the tenth month in a row.

“Confidence in business conditions for 2026 has been shaken, weighing on estimates of job and income growth next year,” wrote Ben Ayers, chief economist at Nationwide. “While spending has held up through 2025 despite deteriorating survey readings, many consumers may have reached their limit as rising prices and labor market concerns have reduced spending plans, at least in the near term.”

The Conference Board report mirrors declines in a similar consumer survey from the University of Michigan. However, with its focus on the labor market, the Conference Board report notes that consumers are increasingly concerned about the state of the labor market.

Labor market concerns persist despite the latest report from the Bureau of Labor Statistics, which showed that the economy added jobs in September, even as the unemployment rate rose to 4.4%.

“Mid-2026 forecasts for labor market conditions remain decidedly negative, and expectations for household income increases have narrowed significantly, after six months of strong positive readings,” Dana Peterson, chief economist at the Conference Board, said in a press release.

The government shutdown also impacted consumer confidence, although the survey period extended beyond the end of the business shutdown.

“The longest federal government shutdown on record weighed on mood,” Wells Fargo economists Tim Quinlan and Shannon Green wrote. “While the lockdown ended on November 12, the survey only ran until November 18, so the government reopening did not provide a significant boost to optimism and may lift moods further in December.”