US Economic Confidence Plummets to 17-Month Low in November

Gallup Index Reaches Lowest Point Since July 2024

The United States experienced a significant decline in consumer sentiment in November, as Gallup's Economic Confidence Index (ECI) fell by seven points to a reading of -30. This marks the lowest point for the index since July 2024, when it registered -35. The findings were released in a report on December 4, 2025, indicating increased apprehension among Americans regarding the nation's economic trajectory.

The ECI, which measures Americans' assessments of current economic conditions and their outlook for the future, showed a worsening perspective on both fronts. Only 21% of U.S. adults in November described current economic conditions as 'excellent' or 'good,' a decrease from 24% in October and the lowest percentage recorded since March. Conversely, 40% of respondents rated conditions as 'poor,' up from 37% the previous month.

Widespread Concerns Over Economy and Job Market

The drop in confidence is attributed to a confluence of factors, including increased consumer concern about the overall economy, job prospects, significant stock market volatility, and uncertainty surrounding the labor market. The final stretch of a federal government shutdown also contributed to the dampened mood.

The outlook for the economy also deteriorated, with fewer than three in 10 adults (27%) believing the economy is getting better, a figure that represents the lowest since July 2024. Approximately two-thirds (68%) of Americans surveyed expressed that the economy is getting worse.

Concerns extended to the job market, where Americans' views worsened considerably. Only 33% of individuals felt it was a good time to find a quality job, while a majority of 63% considered it a bad time. This level of pessimism about job opportunities is the most negative recorded by Gallup since January 2021. Furthermore, private payrolls in the U.S. unexpectedly fell by 32,000 in November, a sharp reversal from the 42,000 jobs added in October, with small businesses experiencing the largest impact, losing 120,000 jobs.

Holiday Spending Plans Plummet

A notable consequence of the declining confidence is a sharp reduction in holiday spending plans. Consumers' average estimated spending for the holiday season fell from $1,007 in October to $778 in November, representing a substantial drop of $229. This decline is the sharpest year-over-year reduction Gallup has ever recorded, surpassing even the drop observed during the 2008 global financial crisis.

• Households earning $100,000 or more now anticipate spending $1,230 on holiday gifts, down from $1,479 in October and $1,578 in November 2024.
• For households earning less than $50,000, projected spending was cut to $384, a decrease from $651 in October.

In a related report, The Conference Board Consumer Confidence Index also registered a decline of 6.8 points in November, reaching 88.7, its lowest level since April.