Growing fears of tariffs pushed US consumer confidence to 4-year low

The US consumer confidence index dropped 7.2 points this month to 92.9, the lowest level in more than four years. American households are concerned about a possible recession and higher inflation triggered by various import tariffs, according to the Conference Board.

US President Donald Trump’s on-again, off-again trade policies make it challenging for companies to plan ahead. This, in turn, has a negative impact on the US GDP. The fall in consumer confidence was particularly driven by Americans over the age of 55, while there was a slight increase among young people. Meanwhile, the population's optimism about future income has significantly vanished, Stephanie Guichard, economist at the Conference Board, notes.

Despite the gloom, consumers do not intend to drastically reduce spending. Yet, the share of the US population planning to buy cars in the next six months has fallen slightly. However, Americans still intend to buy household appliances and go on vacation. This indicates consumers’ concerns about the imminent price increase in the United States, the Conference Board reports.