Consumer sentiment in the United States dropped to a six-month low in October 2025, according to the The Conference Board. The headline index slid to 94.6 from a revised 95.6 in September, signalling mounting concerns among households about job availability, inflation, and economic direction.The decline was most pronounced among younger adults (under 35) and older groups (55+), while middle-aged respondents (35–54) reported slightly improved sentiment. A notable divergence emerged: consumers earning under US $75 000 per year reported sharply weaker confidence, while those earning above US $200 000 remained relatively upbeat — reinforcing economists’ talk of a “K-shaped” economy. Many write-in responses cited high prices, inflation worries, and ongoing political uncertainty (including the federal government shutdown) as the key concerns.The shift in mood has implications for policymakers. With the federal government shutdown ongoing and data releases curtailed, the vacuum of reliable economic signalling compounds uncertainty. Analysts say the downward ˜trend in confidence could strengthen arguments for an imminent rate cut by the Federal Reserve, currently expected to trim its benchmark interest rate in its upcoming meeting.Market watchers caution that consumer sentiment matters because consumption drives ~70 % of U.S. GDP; sustained erosion in spending may ripple into slower growth, weaker corporate earnings and market corrections. While major corporate earnings remain strong and markets near record levels, the disconnect between sentiment and markets raises questions about sustainability. For U.S. households, this all means a more cautious spending environment ahead: fewer big-ticket purchases, worries about job prospects, and sensitivity to inflation and tariffs as the holiday season approaches.
