P&A Providers & Administrators
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

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →