Consumer confidence slides in December to lowest level since US tariffs rolled out

"Consumers confidence in the economy was shaken in December as Americans grow anxious about high prices and the impact of President Donald Trump's sweeping tariffs. The Conference Board said Tuesday that its consumer confidence index fell 3.8 points to 89.1 in December from November's upwardly revised reading of 92.9. In April, when Trump rolled out his import taxes on U.S. trading partners, the reading was 85.7."

"Last week, the government reported that the U.S. economy gained a healthy 64,000 jobs in November but lost 105,000 in October. Notably, the unemployment rate rose to 4.6% last month, the highest since 2021. The country's labor market has been stuck in a low hire, low fire state, economists say, as businesses stand pat due to uncertainty over Trump's tariffs and the lingering effects of elevated interest rates."

"A measure of Americans' short-term expectations for their income, business conditions and the job market remained stable at 70.7, but still well below 80, the marker that can signal a recession ahead. It was the 11th consecutive month that reading has come in under 80. Consumers' assessments of their current economic situation tumbled 9.5 points to 116.8. Write-in responses to the survey showed that prices and inflation remained consumers' biggest concern, along with tariffs, despite repeated claims by President Trump that inflation is a hoax."

Consumer confidence declined to 89.1 in December from 92.9 in November as high prices and sweeping tariffs increased public anxiety. Short-term expectations for income, business conditions and the job market held at 70.7 but remained below the 80 threshold for the 11th consecutive month. Assessments of current conditions fell 9.5 points to 116.8. Write-in responses identified prices, inflation and tariffs as top concerns. Views of the job market weakened, with fewer saying jobs were plentiful and more saying jobs were hard to get. Job creation has slowed and the unemployment rate rose to 4.6%.

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