The consumer confidence index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
The measure of Americans’ short-term expectations for income, business and the job market tumbled more than a dozen points to 81.1. The Conference Board says a reading under 80 can signal a potential recession in the near future.
The proportion of consumers expecting a recession over the next 12 months remained stable.
The board reported Monday that consumers’ view of current conditions ticked down just more than a point to a reading of 140.2.
Consumers stepped up their spending at retail stores last month, contributing to a 0.7% rise in retail sales in November.
Another report showed that consumers increased their spending by a solid 0.4% from October to November, a sign that households continue to propel the economy. The U.S. economy grew at a healthy 3.1% annual rate last quarter, largely thanks to consumer demand.
Consumer spending accounts for nearly 70% of U.S. economic activity and is closely watched by economists for signs how the American consumer is feeling.