Consumer confidence slumped with biggest monthly drop in nearly 4 years

America Consumer trust February fell sharply than expected more than Tuesday’s report issued.

The Council of the Conference issued its consumer confidence index on Tuesday, which refused to 98.3 in February, the lowest level of June. It is better than 102.5 inquiries from LSEG survey by a preliminary reading of the January 104.1.

“In February, the largest monthly decline was registered since August 2021, 20020, – said Stepanu Guice, senior economist, global indicators. “This is a third in a row of the month, bringing the figure at the bottom of the dominant range from 2022.”

One of the components of the report of the conference is the current situation based on the estimates of the current consumers Business and labor market conditions and fell by 3.4 points with 136.5. The expectation of the index based on the income of consumers’ short-term prospects, business and labor market conditions, fell by 9.3 points.

US consumer mood dips on inflation and tariff prices

Consumer confidence has decreased by more than economists in February. (Gabby Jones / Bloomberg Getty Images / Getty Images)

“Only the evaluation of consumers’ business from five index has improved, although lightly. The views of the current market conditions have weakened about further business. Pessimism Prospects for employment He wasted and reached a high level of ten months, “Guiciar wrote.

The decline in trust was spread on all age groups, but was deeper for consumers aged 35 to 55. It was also widely based between revenue groups, only $ 100,000 and $ 125,000.

Federation officials grow the risks of inflation due to the policy of trump cards on tariffs

Consumers expect inflation to speed up in the next 12 months, the conference council found. (Frederic J. Brown / AFP Via Getty Images / Getty Images)

Average 12 months Inflation expectations In February, the report increased from 5.2% to 6%. Gimbard said that “growth probably reflects the mixture of factors, including adhesive inflation, but also the last jumps of the prices of recent household staples and the expected exposure to tariffs.”

Gimbard noted that inflation and prices continue to respond to the answers to the answers to the reporters, but there was a drastic growth in the swearing of trade and tariffs since 2019. He added that Current management And its policy prevailed the answers. “

Federal Reserve Chair Jerome Powell has announced the Central Bank ready to wait for further interest rates based on economic conditions. (Photo: Liu Jie / Xinhua Via Getty Images / Getty Images)

Jeffrey Roch noted that there may be certain behavioral changes among consumers based on the mood expressed in the report and added that Federal Reserve The evaluation cutting pause is unlikely to change through it near the period.

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“Consumers are more and more in the newcomers of unknown exposure Possible tariffs: And it could have been raised in the near future, as they predict higher import prices, “Roaker explained the monetary policy of the next two couples on the next two pairs of matches.