FI showroom red and grey 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...

More Industry

Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
man performing maintenance under a car
Industryby Lauren LawrenceAugust 19, 2026

Find Efficiency in Fixed Ops

A new report shows how service departments can maximize their profitability through efficiency, productivity and the right tools in technicians' hands.

Read More →
Black leather with white trim back passenger seats.
Industryby Lauren LawrenceAugust 17, 2026

Closing the Seat Gap

Mass-market brand vehicle seats are outpacing luxury versions when it comes to customer satisfaction, according JD Power research.

Read More →
Ad Loading...
photo of tractor-trailers moving on a rural U.S. highway
Industryby Hannah MitchellAugust 10, 2026

Auto Industry Execs Talk Trade, Tariffs

Participants in a U.S.-Canada discussion tallied the costs and compiled a list of remedies, including preservation of the North American trade agreement that the U.S. recently declined to renew.

Read More →
newspaper advertisement circled in pink, Turn Listings into Leads, F&I and Showroom
Digitalby Lauren LawrenceAugust 5, 2026

Structure Leads to Optimized Auto Listings

As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.

Read More →
Photo of the exterior of a recently purchased Mazda car dealership with cars for sale parked in front
Industryby Hannah MitchellAugust 3, 2026

Texas Dealerships Rebranded After Sale

The Norm Reeves group of stores had owned the three rooftops in the greater Dallas-Fort Worth metro area that now operate under a homegrown group’s signature.

Read More →
Ad Loading...
Man climbing ladder in front of mountain landscape.
Auto Financeby Lauren LawrenceAugust 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
The words 'Team Work" written on a digital blackboard with writing implements and other office supplies around it
Industryby Hannah MitchellAugust 1, 2026

All on One Team

Since finance-and-insurance was added to the auto dealership, most stores’ F&I teams have been separated from sales like a car’s trunk is separated from the engine. It doesn’t have to – and shouldn’t – be that way.

Read More →
Photo of an land-line phone on a desk with various office supplies
Industryby Hannah MitchellJuly 29, 2026

Auto Dealers Have Some Phone Homework

A midyear study found that stores can do a better job of converting both inbound and outbound calls into customer appointments for increased sales.

Read More →
Ad Loading...
Photo of Ioniq 5 SUV moving on two-lane road next to treeline
Industryby Hannah MitchellJuly 27, 2026

Hyundai Ventures Aim for Deeper AI Dive

The automaker announced partnerships with several technology industry leaders to pursue an ambitious plan for integrating AI into its manufacturing and well beyond automotive.

Read More →