Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Consumer Pessimism Grows

Survey finds increased concern about finances, jobs and inflation, reduced plans to buy big-ticket items

December 1, 2025
Consumer Pessimism Grows

Plans to buy expensive items in the next six months, including cars – flat since May – fell this month. Of planned purchases, though, used cars figured largely.

Credit:

Pexels/Karola G

2 min to read


Consumers aren’t feeling optimistic, pulling down a major sentiment index for the 10th month in a row as they fret about inflation, including trade tariff effects, and politics.

The Conference Board Consumer Confidence Index fell nearly seven points this month to 88.7. 

Ad Loading...

The separate Present Situation Index on today’s labor market and business conditions declined four points to 126.9, and the board’s Expectations Index on short-term outlook fell about nine points to 63.2, remaining under 80 for the 10th month, its threshold for expected recession.

The measured sentiment hit its lowest point since April, when the Trump administration was instituting some of its earliest rounds of trade tariffs

“Consumers were notably more pessimistic about business conditions six months from now,” said Conference Board Chief Economist Dana Peterson. “Mid-2026 expectations for labor market conditions remained decidedly negative, and expectations for increased household incomes shrunk dramatically after six months of strongly positive readings.”

The pessimism showed across ages, income levels and political affiliations, except for consumers younger than 35, the board reported.

Many write-in survey respondents cited the federal government shutdown as a factor in their decreased confidence, along with inflation and tariffs. The six-week shutdown was the longest in U.S. history and came amid ongoing trade tariff fluctuations and effects on products and services prices.

Ad Loading...

The share of consumers who believe the U.S. economy has already been in a recession increased for the fourth month, while those who think a recession is somewhat likely rose.

Plans to buy expensive items in the next six months, including cars – flat since May – fell this month, the board reported. Of planned purchases, though, used cars figured largely.

“After staging a mild comeback on a six-month moving average basis from early-summer lows, expectations for purchasing cars ticked downward for both new and used vehicles,” its report indicates.

As is historically the case in down economies, consumers planned to either splurge on small luxuries, such as amusement parks, or focus on essentials, including healthcare, the survey found.

“In general, spending trends among consumers this year have increasingly moved towards cheap thrills and necessary services and away from expensive and highly discretionary activities.”

Ad Loading...

Originally posted on F&I and Showroom

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →