US consumer confidence slips as tariff, job worries persist

TDT | Washington

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US consumers were increasingly worried about jobs and incomes in August, survey data showed Tuesday, while concerns about price hikes due to President Donald Trump’s sweeping tariffs also persisted.

The Conference Board’s consumer confidence index dipped 1.3 points this month to 97.4, falling from July’s 98.7 reading. But this was better than analysts expected.

“Consumer confidence dipped slightly in August but remained at a level similar to those of the past three months,” said Stephanie Guichard, a senior economist at The Conference Board, in a statement.

“Notably, consumers’ appraisal of current job availability declined for the eighth consecutive month,” she said, adding that “optimism about future income faded slightly” as well.

And pessimism about future job availability ticked up, she noted, with the US jobs market weaker than estimated in recent months.

Meanwhile, “references to tariffs increased somewhat and continued to be associated with concerns about higher prices,” Guichard said.

While a cooling jobs market could nudge the central bank to cut rates sooner rather than later, Federal Reserve officials have been walking a tightrope as they also monitor the effects of tariffs on US consumer inflation.

The Fed has been cautious in cutting rates, holding them at higher levels to ensure that price increases are sustainably tamed.

Yet, economists have warned that Trump’s tariffs -- hitting US trading partners and sectors ranging from steel to autos -- could fuel inflation and weigh on growth.

“References to high prices and inflation, including food and groceries, rose again in August,” said Guichard.

But consumers had more positive views than before of current business conditions, the report said.