WASHINGTON (AP) — Americans’ view of the U.S. economy worsened in June, resuming a downward slide that had dragged consumer confidence to its lowest level since the COVID-19 pandemic five years ago.
The Conference Board said Tuesday that its consumer confidence index slid to 93 in June, down 5.4 points from 98.4 last month, which represented a brief uptick.
The regression surprised economists, who had expected a small uptick this month.
In April, American consumers’ confidence in the economy sank to its lowest reading since May 2020, largely due to anxiety over the impact of President Donald Trump’s tariffs.
A measure of Americans’ short-term expectations for their income, business conditions and the job market fell 4.6 points to 69. That’s well below 80, the marker that can signal a recession ahead.
Consumers’ assessments of the present economic situation declined by 6.4 points to 129.1.
Tariffs and the impact they could have on personal finances remained at the top of respondents’ minds, the Conference Board said.
Trump’s aggressive and unpredictable policies — including massive import taxes — have clouded the outlook for the economy and the job market, raising fears that the American economy is headed toward a recession.
Consumers’ fears of a recession during the next 12 months rose slightly in June and remain elevated, according to the survey results.
The Conference Board said that the three components of the expectations Index — business conditions, job prospects, and future income — all weakened.
It was the sixth straight month that respondents’ views of the job market deteriorated, though the reading remains in positive territory as the U.S. labor market continues to churn out jobs.
The Labor Department earlier this month reported that U.S. employers slowed hiring in May, but still added a solid 139,000 jobs amid uncertainty over Trump’s tariffs. Unemployment remains historically low at 4.2%.
Though concerns about inflation ticked down slightly in June, it remains a major concern among respondents, who frequently mentioned higher prices in tandem with tariffs.
A government report earlier this month showed that consumer prices ticked up in May to 2.4% from a 2.3% year-over-year increase in April. Core prices, which excludes the volatile food and energy categories, rose 2.8% for the third straight month. Economists pay close attention to core prices because they generally provide a better indication of where inflation is headed.
The Board said respondents’ references to geopolitics and social unrest increased slightly from previous months, but are still significantly lower on the list of consumers’ concerns.
The deadline for survey responses was June 18, before the U.S. targeted Iranian nuclear sites but after Israel’s bombing of Tehran.
Americans’ view of the U.S. economy declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The Conference Board said Tuesday that its consumer confidence index ticked down by1.3 points to 97.4 in August, down from July’s 98.7, but in the same narrow range of the past three months. A measure of Americans’ short-term expectations for their income, business conditions and the job market fell by 1.2 points to 74.8, remaining significantly below 80, the marker that can signal a recession ahead. Consumers’ assessments of their current economic situation also fell modestly, to 131.2 in August from 132.8 in July.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Wall Street is rallying after the head of the Federal Reserve hinted cuts to interest rates may be coming, though he gave no clear clue about when.
Federal Reserve governor Lisa Cook late Wednesday said she wouldn’t leave her post after Trump on social media called on her to resign over an accusation from one his officials that she committed mortgage fraud.
Berkshire Hathaway revealed four new investments Thursday in steelmaker Nucor, insurer UnitedHealth and two of the nation’s biggest homebuilders.
Shoppers spent at a healthy pace in July, particularly at the nation’s auto dealerships, as they appear to shrug off President Donald Trump’s tariffs, which are starting to take a toll on jobs and lead to some price increases.
The U.S. stock market is climbing toward records after data suggested inflation across the country was a touch better last month than economists expected.
Stocks are rising on Wall Street, keeping the market on track for its third weekly gain in the last four and possibly more record highs. The S&P 500 was up 0.8% in afternoon trading Friday. The Dow Jones Industrial Average added 243 points, or 0.6%, and the Nasdaq added 1% to the all-time high it set a day earlier. Expedia and Gilead Sciences both rose sharply after reporting results that easily beat analysts' forecasts. Both companies also raised their outlooks. Asian markets closed mostly lower except in Tokyo, where the Nikkei rose 1.9%. European markets were mixed. Treasury yields were higher.
Millions of Americans saving for retirement through 401(k) accounts could have the option of putting their money in higher-risk private equity and cryptocurrency investments.
Wall Street is rising, led by a rally for Apple. The S&P 500 climbed 0.7% Wednesday.
