By John Q. Hosedrinker 
Consumer confidence in the U.S. decreased in December, reaching its lowest point since the implementation of tariffs, driven by anxieties about high prices and the effects of President Trump’s trade policies. The Conference Board’s consumer confidence index dropped to 89.1, with short-term expectations remaining stable but below a key recessionary marker. Concerns about prices and tariffs were prominent in the survey responses, while perceptions of the job market also declined, further contributing to the overall decrease in confidence.
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Consumer confidence slides in December to its lowest level since US tariffs rolled out, painting a rather grim picture of the current economic mood. It’s a bit of a rollercoaster, isn’t it? One minute we’re being told the economy is booming, the next we’re seeing headlines about sliding confidence. This dip, hitting levels not seen since the era of US tariffs, suggests something isn’t quite clicking for the average consumer.
It seems the cost of living is weighing heavily on people’s minds. The narrative around affordability is shifting, and it’s no longer just a talking point. The fact that the same level of spending doesn’t buy the same amount of goods – well, that’s a real problem. Is it inflation or something else? One thought is that perhaps the consumer is far more cost sensitive, which isn’t a great sign. Or, maybe the increased spending is just a reflection of rising prices. The reality is probably a mix of both. Consumers are clearly feeling the pinch.
The implications of this shift are wide-ranging. Retail sales may be up in some sectors, but are those sales a true indicator of economic health? When sales are high, but the volume of goods being purchased is down, there’s a problem. The holiday season is usually a time of increased spending, but this year it seems the shine is off the apple. People are hesitant to spend, and those who are spending may be relying on credit or “buy now, pay later” services, indicating a struggle to make ends meet. It’s a far cry from the “Santa Claus rally” we usually expect.
One point to consider is how tariffs might be affecting workers. The concern is real: job losses and the fear of more to come. A decline in consumer confidence often reflects this underlying unease. When people worry about their jobs and the cost of basic necessities, they naturally become more cautious about spending. This caution is what drives down confidence, and that impacts how everyone acts during the holidays. And what about the big picture? GDP doesn’t equal consumer confidence. GDP growth driven by investments in AI and data centers doesn’t directly translate into increased affordability for the average person.
The situation also highlights the plight of the middle class, which is a key demographic. The middle class is the engine of consumer spending. Their struggles have broad societal consequences. This affects everything from the housing market to overall economic stability. It’s hard to ignore the broader societal trends at play.
The decline in confidence reflects a deeper trend, one where personal economics play a central role in people’s perceptions. People are focused on the cost of day-to-day living and this, in turn, influences their political choices. Issues such as immigration are considered as a result of that focus. The decline may lead to shifts in the political landscape. The focus may be affordability over all other issues.
Perhaps, this is the environment in which we are trying to survive.