The Conference Board Consumer Confidence Index fell to 89.1 in December (from 92.9 in November), marking a fifth consecutive monthly decline and signaling continued erosion in household sentiment.

• The Present Situation Index dropped sharply to 116.8 (from 126.3; -9.5 pts MoM), as assessments of current business and labor market conditions turned negative for the first time since September 2024.

• The Expectations Index held steady at 70.7, remaining below the 80 recession-signal threshold for an eleventh straight month, indicating persistently weak views of future income, business, and labor conditions.

• Labor market perceptions softened further, with the labor market differential continuing to deteriorate as fewer consumers viewed jobs as plentiful relative to those seeing jobs as hard to get.

• Income expectations weakened, as outlooks for household income growth became less positive compared with November, contributing to the overall decline in expectations.

• Consumers’ views of their family’s current financial situation moved into negative territory for the first time in nearly four years, highlighting increased financial strain at the household level.

• Median and average 12-month inflation expectations declined in December after rising in November, while expectations for stock prices over the next year improved to their most positive reading since January 2025.