Consumer Confidence Around Trump’s Economy Shifts Sharply

Consumer Confidence Hits Record Low Under Trump

American consumer confidence in the economy has reached a historic low under President Donald Trump, according to preliminary data from the University of Michigan’s consumer sentiment index. The White House / Wikimedia

May Sentiment Reading Nears Historic Bottom

The May reading fell to 50.8, down from April’s 52.2, marking the second-lowest level ever recorded and the lowest during Trump’s presidency. Gage Skidmore / Wikimedia

Confidence Plunges Well Below Recession-Era Levels

The drop represents a 30-point decline since January, when Trump returned to office, and it now sits well below the average levels seen during the Great Recession. In comparison, the sentiment index averaged 63.7 in 2008 and 66.3 in 2009. Nicola Barts / Pexels

Tariff Concerns Dominate Public Sentiment

The survey, conducted from April 22 to May 13, attributed the sharp decline largely to concerns over tariffs. “Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April,” the University reported. “Uncertainty over trade policy continues to dominate consumers’ thinking about the economy.” Markus Winkler / Pexels

Tariff Pause Fails to Boost Confidence

Even Trump’s recent announcement of a 90-day pause on tariffs for Chinese imports, made two days before the survey concluded, failed to significantly lift consumer confidence. Gage Skidmore / Wikimedia

University: Outlook Remains Grim Despite Pause

“These initial upticks were too small to alter the overall picture. Consumers continue to express somber views about the economy,” the University wrote. Kaboompics.com / Pexels

Inflation Expectations Continue to Climb

In addition to sentiment, inflation expectations are on the rise. Year-ahead inflation is now anticipated to hit 7.3%, up from 6.5% in April. Long-term expectations also ticked up to 4.6% from 4.4%. Engin Akyurt / Pexels

Tariff Levels Remain High

Although Trump’s tariffs have eased since their early April peak, which he called “Liberation Day,” CNBC notes they are still “significantly higher today” than before his return to office. The White House / Wikimedia

Next Sentiment Report Expected May 30

The next consumer sentiment report, scheduled for release on May 30, may reveal whether the pause in tariffs has a lasting impact on Americans’ economic outlook. Kaboompics.com / Pexels