U.S. Consumer Confidence Falls in August Amid Weak Job Market/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Consumer confidence in the U.S. slipped in August as Americans grew more anxious about jobs, tariffs, and persistent high prices. The Conference Board’s index dropped to 97.4, marking its eighth straight month of decline in expectations for the labor market. Economists warn that weakening confidence could signal slowing economic growth ahead.
U.S. Consumer Confidence Quick Looks
- Consumer confidence index fell to 97.4 in August, down from 98.7 in July
- Expectations index slid to 74.8, far below the recession-warning level of 80
- Current conditions index dipped to 131.2 from 132.8 in July
- Job market concerns deepen: 73,000 jobs added in July, short of forecasts
- May and June revisions erased 258,000 jobs from prior estimates
- Unemployment rate rose to 4.2%, up from 4.1%
- Job openings fell to 7.4 million in June, down from 7.7 million
- Worker quits declined, showing waning confidence in switching jobs
- Inflation fears rising as tariffs push wholesale prices higher
- Recession expectations at highest level since April
Deep Look: August Consumer Confidence Dips as Jobs and Tariffs Raise Worries
WASHINGTON — August 26, 2025 – American consumers grew slightly less optimistic about the economy in August, with jobs and inflation concerns weighing heavily on sentiment.
The Conference Board reported Tuesday that its widely watched consumer confidence index fell to 97.4 from 98.7 in July, marking a modest decline but extending a recent pattern of unease. While the index has hovered within a narrow band over the past three months, the details of the report highlight growing anxiety about the future.
Expectations Signal Recession Risk
The Conference Board’s expectations index — which measures how consumers see their income, business conditions, and job prospects in the short term — dropped to 74.8. Economists consider 80 the critical threshold; sustained readings below that level often signal a looming recession.
Meanwhile, the current conditions index, reflecting how Americans view today’s economy, also slipped to 131.2 from 132.8.
Job Market Weakness Driving Concern
Despite unemployment remaining historically low, Americans are clearly worried about the labor market. July’s jobs report showed just 73,000 new jobs added, well below the 115,000 expected by economists. To make matters worse, revisions erased a combined 258,000 jobs from May and June, painting a weaker picture than previously thought.
The unemployment rate also nudged higher, to 4.2% from 4.1%.
This slowdown prompted political fallout. After the July report, President Donald Trump fired Erika McEntarfer, head of the Bureau of Labor Statistics, accusing the agency of mishandling data.
Another report added to the gloom: U.S. employers posted 7.4 million job openings in June, down from 7.7 million in May. The quits rate, a measure of workers’ confidence in finding better opportunities, also declined.
Inflation Pressures and Tariffs
While consumer prices held steady from June to July, wholesale inflation jumped unexpectedly. Economists warn this reflects tariffs imposed by the Trump administration on a wide range of imports.
Higher wholesale costs could soon filter down to consumers, raising prices on everyday goods from electronics to food. The report noted that consumer survey responses increasingly linked concerns about inflation directly to tariffs.
The Conference Board’s findings align with broader fears. The share of Americans expecting a recession within the next year hit its highest level since April 2025, when Trump began rolling out his latest tariff package.
Public Sentiment on the Economy
Consumers’ remarks in the survey revealed unease about three major issues:
- Job security: Respondents noted longer searches for new positions and fewer job postings.
- High prices: Rising costs for groceries, appliances, and rent were frequently cited.
- Tariffs: Many expressed concern that trade policies are pushing prices higher.
“Affordability concerns remain front and center,” said an analyst with The Conference Board. “Consumers are increasingly linking tariffs with higher prices, which could further dampen spending.”
Economic Outlook
With confidence slipping, economists caution that consumer spending — the engine of the U.S. economy — could cool in coming months. If households cut back on purchases amid worries over jobs and higher costs, growth could slow heading into the fall.
More clarity will come next week, when the government releases its August jobs report and updated data on June job openings. Analysts say these numbers will help determine whether the economy is sliding toward a mild downturn or simply experiencing a midyear slowdown.
For now, the takeaway is clear: Americans are still spending, but unease over jobs, inflation, and trade policy is increasingly shaping their economic outlook.
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