U.S. consumer confidence in December fell to its lowest levels since April, as high prices and tariff impacts weighed on household budgets headed into the holidays.

The Associated Press reports that the consumer confidence index released monthly by the Conference Board — a nonprofit financial think tank composed of Fortune 500 companies — fell by nearly four points month-over-month to 89.1 in December. That marked the fifth straight month of declines, and was the index's lowest point since April, when President Donald Trump first announced his sweeping "Liberation Day" tariffs against dozens of nations.

Consumer views of family financial situations also fell into negative territory for the first time in nearly four years, while shoppers appeared to be more cautious regarding plans to buy big-ticket items over the next six months. The drop in confidence was driven largely by a sharp fall in how consumers assessed the current state of the economy, with just 18.7% saying that they believe business conditions are "good," down from 21% in November. Another 19.1% said that business conditions are "bad," up from 15.8% a month ago.

When asked to write in responses to factors they believe are affecting the economy, consumers mentioned prices, tariffs, trade and politics the most, with month-over-month increases in mentions of immigration, war, and topics related to personal finances, such as taxes, income, banks and insurance. Unemployment remained front-of-mind for many as well, with 20.8% of consumers saying that jobs are hard to get, up from 20.1% who said the same in November.

The dip in consumer confidence comes despite the U.S. Commerce Department reporting an economic growth rate of 4.3% for the third quarter of 2025, The New York Times reports. That figure beat analyst estimates of 3%, driven in part by a 1% increase in consumer spending compared to the previous quarter. Economists have theorized that the discrepancy between overall consumer confidence and the relatively higher rate of economic growth is due to a so-called "K-shaped" economy, where high-income households have increased their spending, while lower and middle-income families have struggled financially.