Consumer Confidence Falls to Low Levels Amid Economic Worries

Advanced | November 29, 2025

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A Nervous Mood in the Economy — consumer confidence falls

Sentiment Drops Toward Record Lows

In November, consumer confidence falls in the United States, sliding toward record-low levels, according to the University of Michigan’s Surveys of Consumers. The headline index dropped to 50.3, down from 53.6 in October, keeping sentiment only slightly above the worst readings seen during the high-inflation period of 2022. (Wall Street Journal)

Survey director Joanne Hsu explained that households are increasingly worried about the economic impact of a prolonged federal government shutdown and continued price pressures. Even though official data still shows moderate inflation and unemployment around 4.3%, many people feel the economy is weaker than the numbers suggest. (Wall Street Journal)

Markets React to the Gloom

The weak sentiment reading added to a rough week on Wall Street. Major U.S. stock indexes fell sharply, with the Nasdaq Composite dropping around 2% and heading for its worst week since April. Analysts said that worries about expensive tech stocks, sticky prices, and fragile confidence all combined to put investors in a risk-off mood. (The Guardian)

At the same time, some investors are hoping that falling confidence will push the Federal Reserve to consider interest rate cuts sooner. But mixed messages from Fed officials mean there is still a lot of uncertainty, and that uncertainty makes both consumers and markets more cautious.

Who Feels the Pain and Why It Matters

Lower-Income Households Hit Hardest

The November survey shows that the sharpest declines came from lower-income households, who are more sensitive to changes in prices, job security, and borrowing costs. But even higher-income families reported feeling less optimistic than at the start of the year, suggesting that the anxiety is spreading across income levels. (Wall Street Journal)

When consumer confidence falls, people usually cut back on big-ticket purchases like cars, appliances, or home improvement projects. That can slow down overall economic growth, because consumer spending is a major driver of the U.S. economy.

A Feedback Loop of Worry

Economists warn that sentiment can become a feedback loop. If people believe the economy is getting worse, they spend less, which can actually create the slowdown they fear. In other words, nervous feelings today can shape the real economy tomorrow. Some analysts point out that confidence numbers are now sending a darker signal than many traditional indicators, such as GDP or employment.

For English learners, this story is a good chance to practice talking about the economy in a business-casual way—using words like sentiment, uncertainty, outlook, and downturn to sound more professional in meetings or discussions.

Vocabulary

Sentiment (noun) – general feeling or attitude about something.
Example: “The survey showed very pessimistic consumer sentiment in November.”
Shutdown (noun) – when a government or organization temporarily stops operating.
Example: “The long government shutdown increased uncertainty about the economy.”
Headline index (noun) – the main, overall number in a data report.
Example: “The headline index for confidence fell to 50.3.”
Prolonged (adjective) – continuing for a long time.
Example: “A prolonged period of high rates can pressure household budgets.”
Risk-off (adjective) – describing a market mood where investors avoid riskier assets.
Example: “After the survey, markets moved into a risk-off mode.”
Big-ticket purchases (noun) – expensive items that people do not buy often.
Example: “When confidence is low, people delay big-ticket purchases like cars.”
Feedback loop (noun) – a process where the result of an action influences that same action in the future.
Example: “Falling confidence can create a feedback loop that slows the economy.”
Outlook (noun) – expectations for the future.
Example: “The economic outlook looked weaker after the latest survey.”
Downturn (noun) – a period when business activity and growth decrease.
Example: “Some analysts worry the U.S. may be heading into a downturn.”
Pessimistic (adjective) – expecting bad results or focusing on negative outcomes.
Example: “Consumers became more pessimistic about jobs and prices.”

Discussion Questions (About the Article)

What main reasons does the survey give for the fall in consumer confidence?
How did financial markets react to the weaker sentiment numbers?
Why are lower-income households more affected when confidence drops?
How can a feedback loop between confidence and spending hurt the economy?
Which vocabulary words from the article would you use to explain this news to a colleague?

Discussion Questions (About the Topic)

Have you ever changed your spending habits because you were worried about the economy? How?
Do you think surveys like this are a good way to measure economic health? Why or why not?
What news or data would make you feel more confident about the future?
How should governments and central banks respond when confidence falls but data still looks stable?
In your country, what signs show that people are worried about money or jobs?

Related Idiom

“Tightening your belt” – spending less money because of financial pressure or uncertainty.
Example: “With prices rising and confidence falling, many families are tightening their belt this winter.”

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