Trump's Trade War Has Shattered Consumer Confidence
www.huffpost.com
Americans haven't been so pessimistic about the economy since inflation first spiked under President Joe Biden.

Consumer sentiment fell nearly 11% from March to April and 34% from this time last year, according to new data from University of Michigan’s authoritative survey, released Friday.

The drop continued a three-month trend brought about by Trump’s vow to impose tariffs on products imported to the U.S., a promise Trump fulfilled last week in what he called a “Liberation Day” ceremony at the White House.

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The Yale Budget Lab estimated the average household will be $4,700 poorer as a result of Trump’s tariff gamble.

  • GaMEChld@lemmy.world
    2·
    4 days ago

    What exactly is consumer confidence anyway? Is it like just the general opinion on how our economy is doing? Or is it a measure of something specific?

    • bstix@feddit.dk
      9·
      4 days ago

      Both.

      Copied from various sources elsewhere:

      Consumer confidence is a catch-all phrase for the opinions and attitudes of consumers about the current and future strength of the economy.

      Consumer confidence index (CCI) is a standardised confidence indicator providing an indication of future developments of households’ consumption and saving.

      The Consumer Confidence Index is based on the Consumer Confidence Survey, which has a responding sample size of 3,000 questionnaires. The survey was initially conducted every two months starting in 1967 but changed to monthly tracking in 1977.

      There are five questions asked in the survey. The first two relate to present economic conditions while the remaining three are related to future expectations.

    • buddascrayon@lemmy.world
      2·
      3 days ago

      It’s the belief that you can spend your extra money because you’re not going to go broke next week due to the stability of “the economy”.

      I’m personally saving every single penny and not buying a single thing beyond what I absolutely unequivocally need.

      Note: It’s also entirely possible I may take my extra dough out of my bank and buy gold like one of the crazies on TV because confidence in the dollar is… slipping.

    • Jhex@lemmy.world
      4·
      3 days ago

      it basically measures willingness to spend

      no consumerism, bye bye US economy

    • Z3k3@lemmy.worldEnglish
      3·
      4 days ago

      I may be completely wrong. But I always took it to mean people spending less on stuff they can live without. Either because they can no longer afford it or are expecting something bad to happen on the wallet front

      • TronBronson@lemmy.world
        3·
        3 days ago

        Bstix had the correct answer. These are regular surveys provided to different regions of the country to gauge sentiment. How do you feel about the economy today, what do you think about the future. They have a similar one that goes out to business leaders. When you look at the business confidence and consumer confidence you get a picture of how people in that area will spend, and invest money. It’s not anyones favorite data point, but it can be a strong indicator of recession.

        I believe during covid consumer sentiment cratered first and the economy went after it.