Consumer Confidence Drops Amid Job and Economic Concerns

• The confidence index of 89.1 came in below economists' expectations of 91.0, marking the fifth straight monthly decline
• Consumer views on current business conditions turned negative for the first time in three months, signaling deteriorating economic sentiment
• November data was revised upward as responses collected after the federal government shutdown ended were more positive than those during the impasse

Consumer Confidence Drops for Fifth Consecutive Month

The Conference Board's consumer confidence index fell to 89.1 in December 2025 from a revised 92.9 in November, marking the fifth straight monthly decline and missing economists' expectations of 91.0. The persistent weakness reflects growing concerns about job prospects and deteriorating business conditions.

Key Market Data Points:

• DJIA: 48,461.93 (-0.51%)
• S&P 500: 6,905.74 (-0.35%)
• Nasdaq: 23,474.35 (-0.50%)
• VIX: 14.20 (+4.41%)
• Gold: $4,350.10 (-4.45%)
• Crude Oil: $57.83 (+1.92%)

Critical Findings:

Consumer assessment of business and labor-market conditions plummeted significantly, with views on current business conditions turning negative for the first time since September 2024. November's data received an upward revision as responses collected after the federal government shutdown ended were more positive than those during the impasse.

Market Implications:

The sustained decline in consumer confidence suggests weakening economic momentum heading into 2026, potentially impacting consumer spending patterns and corporate earnings. The miss versus economist expectations, combined with negative business condition assessments, may pressure equity markets and support defensive positioning. The modest rise in the VIX indicates growing market uncertainty, while the sharp decline in gold prices suggests complex cross-currents in safe-haven demand.

The fifth consecutive monthly decline establishes a concerning trend that could influence Federal Reserve policy decisions and corporate investment strategies in the coming quarters.