Californians' anxiety about the new administration's unorthodox policies has dipped, with one optimism measure reaching a six-month high. The Conference Board's Consumer Confidence Index for August shows statewide confidence up 18% since April's recent low. Some predicted effects of higher tariffs, like sharply rising consumer prices, have not materialized. California confidence remains 22% below October levels and 5% below the index average since 2007. Present-condition sentiment is at a three-month high, up 14% since April and 15% above average, while expectations are much weaker—34% worse since October and 21% below the 19-year average.
Californians' anxiety about the new administration's unorthodox policies has dipped, as one measure of optimism hits a six-month high. My trusty spreadsheet peeked at the Conference Board's Consumer Confidence Index for August. This polling tracks shoppers' psyche in eight states, including California, and the nation. The mood of shoppers is critical to the broad economy, as consumer spending is two-thirds of all business activity.
Some of the predicted fallout of higher tariffs, such as sharply rising prices of consumer goods, has yet to materialize. Don't forget that this is a state with a decidedly different global view than Trump's. So, the summer uptick in California optimism does not signal full acceptance of the administration's thinking. Note that California confidence is still off 22% since October, just before Trump won his second term in the White House.
Look inside A peek inside the index shows how the economic emotions are evolving. Californians' view of current conditions the present situation index is at a three-month high. It's up 14% since April, yet it's down 8% since pre-election October. Still, August's reading was 15% above average. It's the future that is very cloudy. California's expectations index was off 3% in June but is 21% higher since April.
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