Catenaa, Friday, August 29, 2025- Americans’ confidence in the US economy declined slightly in August as concerns over the labor market and tariffs continued to weigh on sentiment.
The Conference Board reported its consumer confidence index fell 1.3 points to 97.4, down from July’s 98.7, remaining within the narrow range observed over the past three months.
Short-term expectations for income, business conditions, and job prospects dropped to 74.8, staying below the 80-point threshold often associated with recession risk.
Evaluations of the current economic situation also edged lower, reaching 131.2 from 132.8 in July.
Despite historically low unemployment and layoffs, the labor market shows signs of strain. US employers added only 73,000 jobs in July, falling short of analysts’ 115,000 forecast.
Revisions to May and June data reduced prior job estimates by 258,000, pushing the unemployment rate up to 4.2% from 4.1%. Job vacancies declined to 7.4 million in June, and voluntary quits fell, signaling reduced confidence in career mobility.
Consumers also cited inflation and tariffs as major concerns, with wholesale prices rising unexpectedly last month.
While interest in car purchases increased, intentions for home buying remained stable, and planned spending on big-ticket items and vacations declined.
Economists warn that ongoing import taxes could drive consumer costs higher, contributing to elevated recession expectations, which reached the highest level since April, when the first round of tariffs was implemented.
