Consumer Confidence and Inflation

U.S. consumer confidence fell 3.8 points in December to 89.1 from a revised 92.9 in November, with the expectations index stuck at 70.7—below the 80 recession-warning threshold for an 11th month—and the present situation index down 9.5 points to 116.8; survey write‑ins flagged prices, inflation, tariffs, immigration, war and personal‑finance concerns, and perceptions of the labor market weakened. That softening in sentiment contrasts with BEA data showing 4.3% annualized GDP growth in Q3 (the fastest in two years), while labor data—64,000 jobs added in November after a 105,000 loss in October, 4.6% unemployment and average monthly gains since March down to 35,000 from 71,000—underscore economists’ view of mixed signals from wages and spending.