Consumer confidence among Americans has dropped to its lowest point since January 2021, largely due to fears surrounding job security and financial instability linked to the Trump administration's trade policies and government cutbacks. The Conference Board's report indicates a significant decline in outlook for income and labor market conditions, reflecting heightened consumer anxiety about possible economic deterioration and rising inflation. With inflation expectations increasing to 6.2% over the next year, households are anticipating higher costs, which may result in reduced spending on non-essential items and delaying significant purchases, further impacting the economy.
When people fear for their jobs, they will cut back on discretionary spending on vacations and going out, and delay big purchases like new houses, cars or appliances.
Americans are increasingly anxious about their jobs and finances as the Trump administration's trade policies and government cutbacks stoke concern about the economy.
Economists have warned that Mr. Trump's plans for sweeping tariffs on the United States' biggest trading partners could reignite inflation.
The short-term outlook for income, business and labor market conditions fell to its lowest reading in 12 years, signaling consumer angst about economic conditions.
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