Gallup’s recent survey indicates a sharp decline in American economic confidence, reaching its lowest point in 17 months with an index of -30. The index, which measures perceptions of current economic conditions and future outlook, has fallen seven points from October. Only 21% of adults describe the economy as good or excellent, while 40% rate it as poor. Additionally, only 27% believe the economy is improving, the lowest since July 2024, with 68% stating it is worsening. Americans’ views on the labor market have also worsened, with only 33% considering it a good time to find quality employment, down eight points from August, marking the most negative sentiment since January 2021. Concurrently, consumer holiday spending plans have drastically contracted, with the average expected expenditure dropping by $229 from October to $778— the largest decline Gallup has recorded since the 2008 financial crisis. High- and low-income households are reducing their spending significantly, although only 29% plan to spend less than last year, and 53% expect to spend about the same. The decline in confidence is attributed to ongoing economic uncertainties, including stock market volatility, government shutdown impacts, and concerns about the labor market. Despite the reduced spending forecast, many consumers still intend to spend roughly the same amount as last year, possibly reflecting lingering optimism or resilience despite economic fears.