US consumer sentiment plunges over tariff and inflation fears

[Zincwarrior]

Consumer sentiment has fallen for the second time in two months. It fell 10% in February. 62% of those surveyed thought the current administration was not doing enough to lower prices. Thoughts USMB?

https://www.cnn.com/2025/02/21/economy/consumer-sentiment-inflation-tariffs

Inflation is picking up again and President Donald Trump said this week it’s all his predecessor’s fault. But no matter who Trump blames for inflation, America’s economic mood is now souring — and Trump is getting the heat for it.

The University of Michigan’s latest survey, released Friday, showed that US consumer sentiment declined in February for the second consecutive month, according to a final reading, down by a steep 10% from January. That was double the decline initially reported earlier this month.

It’s a stunning about-face after American consumers and businesses grew hopeful (briefly) about the economy’s future following Trump’s election in November. The latest decline in consumer sentiment was driven by worries over Trump’s tariffs potentially jacking up prices.

A new CNN poll released Thursday similarly showed pessimism on the rise because of prices: Nearly two thirds of US adults nationwide, 62%, said they feel Trump’s isn’t doing enough to address inflation. The Michigan survey showed that Americans are now fearful of higher inflation on the horizon.

On the campaign trail, Trump promised to “bring down prices, starting on Day One.” Clearly, that didn’t happen. In January, consumer prices climbed at the fastest monthly pace since August 2023, increasing 0.5% from December.

Joanne Hsu, the Michigan survey’s director, said in a release that the broad decline was “in large part due to fears that tariff-induced price increases are imminent.”

But changes in sentiment are beginning to diverge based on political affiliation.

“While sentiment fell for both Democrats and Independents, it was unchanged for Republicans, reflecting continued disagreements on the consequences of new economic policies,” she said.

 

[Rambunctious]

CNN?....

 

[citygator]

CNN?....

No. It's from the University of Michigan.

 

[Papageorgio]

Consumer sentiment has fallen for the second time in two months. It fell 10% in February. 62% of those surveyed thought the current administration was not doing enough to lower prices. Thoughts USMB?

https://www.cnn.com/2025/02/21/economy/consumer-sentiment-inflation-tariffs

I lost faith in the media after they have been caught lying to us while trying to promote their left wing agenda and trying to suppress speech.

 

[citygator]

That was a giant plunge. I am not sure the consumer is rational anymore. Look at how consumer confidence and GDP interact. I used "real GDP" so it is inflation adjusted.

• Consumer is super pessimistic compared to history regardless of GDP
• Consumer confidence plunges sometime before a recession (2000/2008), didnt predict 1990, and does not always reflect upcoming recessions.

So its hard to interpret. Still a good measure of what America thinks about the economy when they vote but may not reflect their spending habits.

 

[C_Clayton_Jones]

"The latest decline in consumer sentiment was driven by worries over Trump’s tariffs potentially jacking up prices."

Hence the stupidity of those who voted for Trump, knowing he would impose tariffs.

 

[1srelluc]

Odd, everyone in my AO is tickled to death about the way things are going.

Hell, I talked to a .gov worker this morning whose job he was to lateral transfer into (closer to home) was frozen.

He understands and was fine with it.

BTW.....Lets be honest here, the public really does not understand Tariffs, at least to the point that it would affect "sentiment".....After all look at the number of them that voted for Harris.

I mean how smart can they be?

 

[dudmuck]

I lost faith in the media after they have been caught lying to us while trying to promote their left wing agenda and trying to suppress speech.

 

[Papageorgio]

My feelings about Biden as well. Thanks

 

[airplanemechanic]

No different than a 5 yr old expressing "concern" over getting a shot.

The pain in the short term might be high, but getting them better in the long term will make it worth it.

Same with tariffs and these so called "people" who are so scared about them. Coddle them like whiny 5 year olds about to get a shot in their butt.

 

[Zincwarrior]

February consumer confidence posts biggest drop since 2021 in latest sign of slowing economy​

• The Conference Board’s Consumer Confidence Index slipped to 98.3 for the month, down nearly 7% and below the Dow Jones forecast for 102.3. It was the largest monthly drop since August 2021.
• The Expectations Index tumbled 9.3 points to a 72.9 reading, the first time since June 2024 that the measure has fallen below the level consistent with recession.

https://www.cnbc.com/2025/02/25/february-consumer-confidence-comes-in-lighter-than-expected-in-latest-sign-of-slowing-economy.html

 

[justoffal]

Consumer sentiment has fallen for the second time in two months. It fell 10% in February. 62% of those surveyed thought the current administration was not doing enough to lower prices. Thoughts USMB?

https://www.cnn.com/2025/02/21/economy/consumer-sentiment-inflation-tariffs

Yeah back pointing never works....even if it is legitimate. It's just a loser of a strategy.
Prices, Prices, Prices....it was the main theme at the End of the last administration and it will continue to be the main theme now.
GROCERYCRATS is a real thing....they don't adhere to any party but the party of the kitchen table and the daily grind. Unless either of the major parties begin to understand this we will see a new political movement that will eclipse both of them. IMO.

 

[justoffal]

Odd, everyone in my AO is tickled to death about the way things are going.

Hell, I talked to a .gov worker this morning whose job he was to lateral transfer into (closer to home) was frozen.

He understands and was fine with it.

BTW.....Lets be honest here, the public really does not understand Tariffs, at least to the point that it would affect "sentiment".....After all look at the number of them that voted for Harris.

I mean how smart can they be?

They are all still on the payroll btw until September.
I noticed that MSM keeps forgetting to mention that.
Doesn't work out well for them.

 

[citygator]

This is pretty much a disaster for any business that relies on the consumer. Trump’s irrational behavior has the markets plunging and the consumer confidence shattered. Way to go morons.

 

[citygator]

++

Consumer sentiment extended its early month decline, sliding nearly 10% from January. The decrease was unanimous across groups by age, income, and wealth. All five index components deteriorated this month, led by a 19% plunge in buying conditions for durables, in large part due to fears that tariff-induced price increases are imminent. Expectations for personal finances and the short-run economic outlook both declined almost 10% in February, while the long-run economic outlook fell back about 6% to its lowest reading since November 2023.

 

[OhPleaseJustQuit]

No. It's from the University of Michigan.

.


Just as , or worse!

Nice try.




.

 

[dudmuck]

.


Just as , or worse!

Nice try.




.

its actually from the conference board, but the university of michigan separately analyzes consumer confidence.

the correct method of countering this, is to show that consumer confidence is actually holding up amid tariffs and inflation.

 

[Rambunctious]

No. It's from the University of Michigan.

That's even worse....

 

[Dante]

oiio

 

[Dante]

its actually from the conference board, but the university of michigan separately analyzes consumer confidence.

the correct method of countering this, is to show that consumer confidence is actually holding up amid tariffs and inflation.

thank you