The Trump administration’s trade agreements with several countries are giving Americans a sense of confidence about the economy’s future, according to recent data. The Conference Board reported that consumer confidence increased 2 points this month to 97.2, indicating people’s attitudes towards the economy have stabilized after deteriorating sharply in spring.
Tariffs imposed by Trump in April led to concerns about higher prices and a weaker labor market. However, trade agreements with countries like China, the UK, and Japan have helped alleviate these fears. The administration has also brokered a deal with the European Union, describing it as the “biggest deal ever made.”
The increase in consumer confidence was driven by older Americans and Republicans, who had soured on the economy in June. A separate index showed an even greater increase in people’s outlook on income, business conditions, and hiring.
While inflation remains a concern, its impact has been somewhat muted due to businesses absorbing higher costs and maintaining inventory levels. However, economists warn that this trend may not last, as inventories dry up and tariffs continue to affect supply chains.
According to Lauren Goodwin, economist at New York Life Investments, “Goods prices in categories sensitive to trade policy have started to edge higher.” This suggests that the economic pain caused by steep tariffs is still being felt.
Source: https://edition.cnn.com/2025/07/29/business/consumer-confidence-july