US consumer confidence fell for the fifth month in a row, tying the longest record since the 2008 financial crisis

Consumer confidence in the US has declined for the fifth month in a row, reflecting growing pessimism about the outlook for the labor market and business environment.

The Zhitong Finance App learned that data released on Tuesday showed that the Chamber of Commerce's Consumer Confidence Index fell to 89.1 in December, down from 92.9 last month. The period of continuous decline has tied the record for the longest period since the 2008 financial crisis.

Dana M Peterson, chief economist at the Advisory Council, said: “Despite the upward revisions to the November data due to the end of the government shutdown, consumer confidence declined again in December and was far below the peak in January this year. Four of the five components of the overall index declined, and one was at a level indicating significant weakness.”

Peterson also said that the economic influencing factors mentioned by consumers in open responses are still mainly focused on prices and inflation, tariffs and trade, and politics. However, in December, there was an increase in the proportion of references to immigration, war, and topics related to personal finance. These responses continued to be pessimistic, but were less severe than in November, probably due to fewer negative comments about prices and inflation, politics, and a rebound in positive responses about interest rates.

In terms of sub-indicators, the current situation index fell sharply to 116.8, the lowest level since February 2021; while the expected index reflecting the economic outlook for the next six months was basically flat in December, indicating that consumers are still cautious about the short-term outlook.

The analysis points out that high price levels and concerns about a weakening job market continued to suppress consumer sentiment throughout the year, causing the index to remain low since the pandemic. Currently, employment growth in the US is slowing down and the unemployment rate is rising, while inflation is still higher than the Federal Reserve's policy target, further increasing household anxiety about the economic outlook.

Economists expect recruitment activity to remain sluggish next year, there is limited room for improvement in the unemployment rate, and consumer confidence may continue to be pressured. At the same time, analysts also expect wage growth to slow further in 2026, which may lead to increased consumption differentiation among different income groups and add new uncertainty to the outlook for the US economy.