In December 2024, the U.S. Consumer Confidence Index declined to 104.7 from 112.8 in November, indicating reduced optimism among consumers. The Present Situation Index, reflecting current business and labor market conditions, decreased slightly to 140.2. The Expectations Index, which gauges short-term outlooks for income, business, and labor market conditions, fell to 81.1, nearing the threshold that often signals a potential recession. Despite this decline, consumer spending rose by 0.7% in November, contributing to a 3.1% annual economic growth rate in the previous quarter. Economists closely monitor these trends, as consumer spending accounts for about 70% of U.S. economic activity.
