Reliable in American consumers in February, the largest monthly decline in more than four years, the business research group said on Tuesday, with apparently inflation and trade war under the President Donald Trump seeing the growing number of Americans.
The conference committee reported that his consumer confidence index sank to 98.3 of 105.3 in January. It is far below the expectations of the economist, which projected reading 103, according to research on facts.
“Survey on the Conference Committee is 3. Data point in less than a week (after the PMIs and Michigan report) which makes it abundant to trump the insecurity associated with control and overturn the economy (at least) in slow down (at least ) in slow down (at least) in slow down (at least) in slow down (at least) in slow down (at least) in slow down (at least) if not something), “Adam Crisafulli, President of the Advisory Society Investments Vital knowledge, he said in Note.
The fall of the seven points was the largest decline of the month to the month from August 2021. years.
The markets on Wall Street have fallen right away. The S & P 500 fell into a morning shop by 0.8%, while the Dow Jones slid the industrial average 1.7%. Nasdaq declined 1.6%.
Tariff concern
Respondents in the Committee Research have expressed concern about inflation with a significant increase in trade and tariff mention, the Committee said.
From the laying in January, President Trump has Fried cleaning tariffs He says he will increase the American economy in the long run. Although it is not clear that Mr. Trump will bring all the tariffs that he has been disgusted – 30-day replay Mexico and Canada to bring 25% of the countries – the President also signals that the president also signaled with additional tariffs.
Mr. Trump’s plans to rely on new tariffs to bring their trade and other policy objectives to encourage some economists to predict greater inflation 2025. years.
“Survey on the Conference Board in the research of Michigan in the show that the trust of consumers made a sharply deterioration in the facilities to impose large tariffs and to the research records cited by the Federal Tariff and Employment, the Chief American Economist in the Research.
“The weakness of self-confidence suggests that the recent rapid growth of spending on permanent goods generally reflects the tariffs in the household,” he added.
The report of the Conference Board on Tuesday said that the measure of short-term expectations of Americans for income, operations and market of work flush 9.3 points to 72.9. The Conference Committee says that reading below 80 can signal a potential recession in the near future.
The share of consumers who expect a recession in the next year jumped to the nine-month high, the board said.
“This index says consumers are rattled. Their current situation is not that bad, but the growing does not feel so good in the future,” Analysts with a high frequency economy in the report said. “The fall of the consumer layout considering that I cannot be a coincidence,” they added.
Growing pessimism
The view of the consumers on the current terms collapsed 3.4 points to read 136.5 this month, and the view of the current terms in the labor market fell again.
“The presentations of the current working market conditions weakened,” the group said on Tuesday. “Consumers became pessimistic in future business conditions and less optimistic in future revenues. Pessimism about future employment prospects worsened and reached ten-month high.”
Consumers appeared more confident in 2024. years and they spent generously during the holidays. However, American retail sales in January fell sharply, with cold time taking some guilt for indentation in the sale of vehicles and in retail stores.
Retail sale dropped by 0.9% last month since December, the Commerce reported last week. The fall, the largest in the year, came after two months of healthy winnings.
Inflation has also remained sticky. So much that the federal reserves have taken a more careful approach to interest rates, leaving your borrowing price at its last step after cutting in the previous three. HED officials also expressed uncertainty over the policies of the new administration.
The latest economic data and a pessimistic turn among American households do not arise well for the American economy, experts say.
In the Note clients, Carl Weinberg, the main economist at a high frequency economy, wrote: “on the basis of all indicators that show the decline of consumers and business trust and feel, we expect to slow the economy.”
Consumer confidence index measures and American estimates of current economic conditions and appears for the next six months.
The consumer cost is about two-thirds of American economic activity and soon views the economists for signs about how the American consumer feels.
2025-02-25 16:49:00
