Conf Bd. Finds Consumer Confidence Down After U. Mich Index Says Opposite

Consumer confidence declined in December, with a growing number of consumers expressing concerns about politics and tariffs.

The Conference Board’s Consumer Confidence Index decreased by 8.1 points to 104.7, a move that reversed a November rebound in consumer confidence and returned the index to the middle of the range it has been in for the past two years, according to a Monday (Dec. 23) press release.

The December results showed a 1.2-point decline in the Present Situation Index, which gauges consumers’ assessment of current business and labor market conditions, and a 12.6-point decline in the Expectations Index, which measures consumers’ short-term outlook for income, business and labor market conditions, according to the release.

“While weaker consumer assessments of the present situation and expectations contributed to the decline, the expectations component saw the sharpest drop,” Dana M. Peterson, chief economist at The Conference Board, said in the release. “Consumer views of current labor market conditions continued to improve, consistent with recent jobs and unemployment data, but their assessment of business conditions weakened.”

A growing number of consumers said their views of the economy were affected by politics — including the outcomes of the November election — and tariffs, according to the release.

This month’s survey included a special question about tariffs, and it found that 46% of consumers expect tariffs to raise the cost of living, while 21% expect tariffs to create more U.S. jobs, per the release.

A month earlier, in November, The Conference Board’s index of consumer confidence rose by more than two points compared with the previous month and reached the top of the range that has been seen over the past two years.

The dip in The Conference Board’s December index was unexpected and was “well below” the median estimate of economists, Bloomberg reported Monday.

The University of Michigan Survey of Consumers for December, which was released Friday (Dec. 20), found that consumer sentiment rose 3.1% in December and reached its highest point since April.

“Broadly speaking, consumers believe that the economy has improved considerably as inflation has slowed, but they do not feel that they are thriving,” Joanne Hsu, director of the Surveys of Consumers, said in a Friday press release.