Consumer Sentiment Falls in November

Consumer sentiment, also known as consumer confidence, measures how U.S. consumers feel about the economy, wages, jobs and their personal finances.

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Updated Nov 25, 2025 2:36 p.m. PST · 7 min read

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Updated on Nov. 25.

Conference Board: Confidence tanks in November

The Conference Board’s Consumer Confidence Index report for November (released Nov. 25) went down by 6.8 points in November from 95.5 in October. Both the Present Situation Index and the Expectations Index declined, as well.

“Consumer confidence tumbled in November to its lowest level since April after moving sideways for several months,” said Dana M. Peterson, chief economist at The Conference Board. Peterson said that writ-in responses from consumers mainly focused on prices and inflation, tariffs and trade, as well as politics and the government shutdown. “The overall tone from November write-ins was slightly more negative than in October,” said Peterson.

Some key takeaways from the report:

Consumers' stock price outlook dipped slightly, but remained largely positive.
Inflation expectations remained high.
Interest-rate expectations softened.
Assessments of family finances worsened, especially the assessment of current conditions, which hit their lowest level since Aug. 2024.
More consumers believe the U.S. is already in a recession.
Plans for big-ticket purchases fell.
Services spending plans for the next six months declined overall.
The top five categories for planned services spending include restaurants, bars, take-out; health care; streaming, internet and mobile services; beauty and personal care; and hotels, motels for personal travel.
Consumers spending is trending up in “cheap thrills” and necessary services, while spending on expensive and “highly discretionary activities” are declining.

More findings from the Conference Board

The Conference Board’s Consumer Confidence Index went down 6.8 points in November to 88.7, the latest report released on Nov. 25 shows.

The board’s Present Situation Index — measuring consumers’ current assessment of business and labor market conditions — declined by 4.3 points to 126.9.

The Expectations Index — measuring consumers’ short-term outlook for income, business and labor market conditions — declined 8.6 points to 63.2. The same index was at 54.4 in April, the lowest level in nearly 14 years.

University of Michigan: Index fell in November

The University of Michigan’s Index of Consumer Sentiment dropped in November, according to the final results for the month released on Nov. 21.

“After the federal shutdown ended, sentiment lifted slightly from its mid-month reading,” said Joanne Hsu, who directs consumer surveys at the University of Michigan, in the release. “However, consumers remain frustrated about the persistence of high prices and weakening incomes.”

More findings from the University of Michigan

The University of Michigan Index of Consumer Sentiment’s final reading for November registered at 51, compared to October’s reading of 53.6, according to the survey released on Nov. 21.

The university’s Index of Current Economic Conditions registered 51.1 in November, down from 58.6 in October. The Index of Consumer Expectations rose to 51 in November after hitting a record low of 49 in its initial reading earlier in the month. In October, the index was 50.3, just 0.3 points above the previous record of 50 set in June 2022.

New York Fed: Consumers ambivalent on job security

The New York Fed’s Survey of Consumer Expectations for October, released on Nov. 7, shows consumers are having mixed feelings about the labor market:

The mean probability that the U.S. employment rate will increase a year from now increased to 42.5%.
The probability of finding a job if one’s current job is lost fell to 46.8%.
The probability of losing one’s job in the next year dropped to 14%.

Other findings:

Inflation: Median inflation expectations for the next year decreased to 3.2% in October from 3.4% in September. The expectation that inflation would increase over the next three years and five years was unchanged.
Personal finance: Households’ assessment of current finances and expectation for Americans’ household financial situation in the next year both down.

What is consumer sentiment?

Consumer sentiment, also known as consumer confidence, is an index of how U.S. consumers are feeling about the current and future state of the economy, and all that folds into the economy: the job market, wages, business conditions and their personal finances. It’s a valuable tool for economists, as consumer sentiment can be used as an early predictor of economic changes.

How people feel about the economy can directly impact the economy, because consumers' attitudes often affect how much they spend on things like food, transportation, household goods, entertainment and more.

» Stay informed: Check out our news hub for all the latest.

In 2023, consumers’ personal spending made up 67.9% of the U.S. GDP, or gross domestic product, according to the Federal Reserve Bank of St. Louis. That’s a significant majority of the nation’s GDP, so keeping a close eye on consumer sentiment is key in foreseeing potential economic slumps or rallies.

When the economy is in a recession, consumer sentiment falls. On the flip side, when the economy is expanding, consumer sentiment rises. The index does typically peak before a recession, though.

Unlike other indexes, such as the Consumer Price Index (CPI), consumer sentiment isn’t calculated using spending data or hard figures. Instead, economists rely on two major surveys of consumer confidence: The University of Michigan’s Surveys of Consumers and the Conference Board’s Consumer Confidence Survey.

Each survey collects the general attitudes and opinions of hundreds of U.S. consumers. Then, those opinions are assigned numeric values and aggregated into one number, or index.

What is consumer sentiment like right now?

The University of Michigan’s Index of Consumer Sentiment

The final reading for November from the University of Michigan, released on Nov. 21, shows:

The Index of Consumer Sentiment registered at 51 for November, down from 53.6 for October.
Current Economic Conditions registered at 51.1 for November, down from 58.6 for October.
The Index of Consumer Expectations registered at 51 for November, down from 50.3 for October.

How the University of Michigan creates its index

The Index of Consumer Sentiment is one of three indexes derived from the University of Michigan’s Surveys of Consumers, which started in 1946. Originally conducted annually, the surveys switched to a monthly cadence in 1978. The surveys have a sample size of roughly 600 people selected randomly from the 48 adjoining U.S. states and the District of Columbia.

The surveys include roughly 50 questions covering personal finances, business conditions and buying conditions. From those surveyed, three indexes are produced: the Index of Consumer Sentiment, the Index of Consumer Expectations and the Index of Current Economic Conditions.

The Index of Consumer Sentiment is the most commonly cited index of the bunch. It’s derived from these five questions:

"We are interested in how people are getting along financially these days. Would you say that you (and your family living there) are better off or worse off financially than you were a year ago?"
"Now, looking ahead: Do you think that a year from now you (and your family living there) will be better off financially, or worse off, or just about the same as now?"
"Now, turning to business conditions in the country as a whole. Do you think that during the next twelve months we'll have good times financially, or bad times, or what?"
"Looking ahead, which would you say is more likely: that in the country as a whole we'll have continuous good times during the next five years or so, or that we will have periods of widespread unemployment or depression, or what?"
"About the big things people buy for their homes, such as furniture, a refrigerator, stove, television, and things like that. Generally speaking, do you think now is a good or bad time for people to buy major household items?"

Historically, the surveys have been conducted by phone. Starting in July 2024, they'll be conducted online, with researchers aiming for 900 to 1,000 respondents.

The Conference Board’s Consumer Confidence Index

Conference Board data for November, released on Nov. 25 shows:

The Conference Board’s Consumer Confidence Index fell 6.8 points to 88.7, from 95.5 in October.
The Present Situation Index went down by 4.3 points to 126.9.
The Expectations Index decreased 8.6 points to 63.2.

How the Conference Board’s Consumer Confidence Index comes together

The Conference Board’s Consumer Confidence Survey was launched in 1967 as a mail survey conducted every other month. Today, the survey is conducted online, on a monthly basis, with a sample size of roughly 3,000 respondents.

The Conference Board issues a five-question survey to calculate three distinct indexes: the Consumer Confidence Index, the Present Situation Index and the Expectations Index. Once the surveys have been completed, each question is given a relative value. Then, those values are compared against their relative values from 1985 — the survey’s benchmark year, with an index set at 100.

The Consumer Confidence Index is the average index for all five questions. The Present Situation Index is calculated using the average indexes for the first two questions, and the remaining three questions determine the Expectations Index.

Present Situation Index

Respondents’ appraisal of current business conditions.
Respondents’ appraisal of current employment conditions.

Expectations Index

Respondents’ expectations regarding business conditions six months hence.
Respondents’ expectations regarding employment conditions six months hence.
Respondents’ expectations regarding their total family income six months hence.

Consumer Confidence Index

This is the average index for all five questions above.

The Federal Reserve Bank of New York’s Survey of Consumer Expectations

Some highlights for October from the Federal Reserve Bank of New York’s Survey of Consumer Expectations released on Nov. 7 shows:

Inflation. Median inflation expectations went down by 0.2 percentage point to 3.2% for the one-year ahead horizon, held steady at the three-year horizon and five-year horizon.

Commodity prices. Year-ahead price expectations decreased for gas (down 0.7 percentage point to 3.5%) and food (down 0.1 percentage point to 5.7%). Price expectations for the year ahead rose for the cost of college (up 1.2 percentage points to 8.2%), medical care (up 0.1 percentage point to 9.4%) and rent (up 0.2 percentage point to 7.2%).

Home price growth. Median year-ahead home price growth expectations held steady at 3% for the fifth month in a row. Since August 2023, the range has moved between 3% and 3.3%.

Earnings expectations. Median one-year-ahead expectations for earnings growth went up by 0.2 percentage point to 2.6%.

Unemployment expectations. The mean probability that the unemployment rate will increase a year from now increased by 1.4 percentage points to 42.5%.

Probability of job loss. The mean expectation of job loss over the next 12 months went down by 0.9 percentage point to 14% — lower than the trailing 12-month average of 14.2%.

Probability of quitting. The mean expectation of quitting a job over the next 12 months went down 1.9 percentage points to 18.8%.

Probability of finding a job if job loss occurs. The mean perceived probability of finding a job over the next 12 months fell 0.6 percentage point to 46.8%, below the 12-month trailing average of 50.6%.

Household income growth. The median expectation of household income growth went down by 0.1 percentage point to 2.8%.

Household spending growth. Households expect to spend 4.8% more over the next year, a 0.1 percentage point increase.

Credit access. Perceptions of credit access improved from a year ago.

How the Federal Reserve Bank of New York conducts its survey

The Federal Reserve Bank of New York’s Survey of Consumer Expectations focuses on expectations about economic outcomes.

The survey, which is conducted by NielsenIQ, launched in 2013. It’s an internet-based survey that asks a rotating panel of 1,300 heads-of-household about their expectations of the economy, as well as their own personal finances related to the following categories:

Inflation:

Inflation expectations.
Inflation uncertainty.
Probability of different inflation outcomes.
Home price change expectations.
Home price change uncertainty.
Commodity price change expectations.

Labor market:

Earnings growth expectations.
Earnings growth uncertainty.
Job separation expectations.
Job finding expectations.
Moving expectations.
Expectations of higher unemployment.

Household finance:

Household income growth expectations. Household spending growth expectations. Change in taxes. Change in credit availability. Debt delinquency expectations. Expectations of higher interest rate on savings accounts. Household financial situation.Expectations of higher stock prices. Government debt growth expectations.

» MORE: Current rate of inflation and why it matters

When do the next consumer sentiment reports come out?

The University of Michigan’s next set of results for its Surveys of Consumers will be released on Friday, Dec. 5.

The Conference Board will release its next Consumer Confidence Survey on Tuesday, Dec, 23.

The New York Fed will release its next Survey of Consumer Expectations on Tuesday, Dec. 8.

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