Consumer confidence in the U.S. economy has dropped significantly, reaching a three-decade low. The University of Michigan’s consumer expectations index has fallen by 32% since January, largely due to uncertainty surrounding trade policies and tariffs. This decline affects all demographics and is accompanied by an expected inflation rate of 6.5% over the next year, the highest projection since 1981. Despite recent positive economic indicators, prolonged consumer pessimism and potential economic slowdown could pose challenges for the administration. Economists warn that avoiding a recession may require revisiting current tariff strategies.
— new from Politico