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

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →