Generation X has hit its lowest consumer confidence of any generation, with the six-month average of the Consumer Confidence Index falling to 78 points—the lowest in at least four and a half years, according to data from The Conference Board released this week.
The generational divide in economic outlook is stark. Gen Z and millennials under 35 report the highest consumer confidence, while Gen X, now ages 45 to 61, has sunk below even baby boomers, whose confidence index stands at 83 points. Confidence readings for both older groups have been in steady decline since early 2025.
The pessimism matters economically. Gen X is in or near their peak earning years, and their reduced spending appetite during this critical period could ripple through an economy where consumer spending accounts for roughly 75 percent of economic activity. Gen X already commands over 30 percent of U.S. household spending and was on track to spend $15.2 trillion globally in 2025.
Dana Peterson, chief economist at The Conference Board, identified several probable causes for Gen X’s economic gloom. The generation is caught in the “sandwich generation” squeeze, simultaneously caring for aging boomer parents and their own children. Many also feel unprepared for retirement—only 35 percent feel prepared to financially support their parents, and just 55 percent say they can financially support their children over the next few years, according to a NielsenIQ report.
The pessimism also reflects how Gen X processes economic information differently than younger generations. Michael Strain, an economist at the American Enterprise Institute, explained that older consumers compare current prices to historical prices they remember. “I kinda feel like somebody’s punching me in the face and taking a couple of $20 bills out of my wallet,” Strain said, describing how inflation feels to someone with decades of price memory.
Researchers note that Gen X’s midlife malaise may also reflect a deeper life-cycle pattern. Studies show that happiness follows a U-shaped curve across a lifetime, with contentment bottoming out in the mid-to-late 40s—precisely where Gen X currently sits. Michael Madowitz, an economist at the Roosevelt Institute and himself a Gen Xer, acknowledged the pattern: “Maybe you’re taking a longer view… and you’re thinking about it as more of a 10- or 20-year thing instead of a six-month thing. I think that can really change your overall outlook.”
Despite the gloom, slumping confidence across all generations has not yet significantly curbed American spending. Gen Z confidence rose slightly in April 2026 to about 108 points, while millennials ended July near 106 points. Still, Peterson emphasized that measuring consumer confidence by age provides a crucial signal for understanding where the economy is headed, particularly when the most pessimistic cohort is in its highest-earning years.
Sources
- Axios — Gen X consumer confidence data, six-month rolling average at 78.4 points, and analysis from Dana Peterson on sandwich generation pressures and retirement concerns
- New York Post — Six-month Consumer Confidence Index for Gen X at 78 points (lowest in 4.5 years), retirement preparedness figures (35% prepared for parents, 55% for children), and global spending projections
- Marketplace — Economist commentary from Michael Strain and Michael Madowitz on price memory and longer-term economic outlook; Dana Peterson on consumption’s role in the economy
- The Conference Board — Consumer Confidence Index data and Dana Peterson’s role as chief economist
- NielsenIQ — Gen X retirement preparedness and financial support statistics
