Consumer confidence in the US has taken a sharp decline, signaling worries about the economy under President Donald Trump. The Conference Board reported its largest monthly drop since 2021, with consumer confidence plummeting to new lows.
A growing number of consumers believe a recession is looming within the next year, and many are expecting prices to rise due to tariffs. In fact, seven out of 10 American adults think tariffs will increase prices, according to an Ipsos survey. This concern comes as inflation rates continue to rise, with consumer prices increasing 3% in January compared to last year.
Egg prices, a symbol of rising costs, have soared 53% in the past year due to a shortage caused by avian flu. The decline in consumer confidence is attributed to concerns over tariffs, spending cuts, and deportations, which may lead to higher prices and reduced economic growth.
While some measures of consumer sentiment improved this month, such as an uptick in purchasing plans for homes, the overall trend suggests that consumers are becoming increasingly cautious about the economy. The disparity between Democrats and Republicans is also notable, with attitudes worsening among Democrats while sentiment improves among Republicans.
The latest data comes after a report last month showed a decline in consumer sentiment from the University of Michigan. The sharp divergence in opinions highlights the growing divide on economic issues between the two parties.
Source: https://abcnews.go.com/Business/consumer-confidence-falters-signaling-worry-economy-trump/story?id=119164349