US consumer confidence has slumped to its lowest level since President Donald Trump鈥檚 sweeping tariffs came into effect in April, according to data published Tuesday, with respondents expressing growing concern about inflation.
The Conference Board鈥檚 consumer confidence index slipped 3.6 points to 94.2 in September, down from a revised 97.8 a month earlier.
This was worse than analysts expected, according to surveys of economists conducted by Dow Jones Newswires and The Wall Street Journal. 鈥楥onsumers鈥� write-in responses showed that references to prices and inflation rose in September, regaining its top position as the main topic influencing consumers鈥� views of the economy,鈥� Conference Board senior economist Stephanie Guichard said in a statement.
References to tariffs remained high, but were lower than a month earlier, she noted.
In slightly more positive news, consumers鈥� average 12-month inflation expectations 鈥榠nched down鈥� to 5.8 per cent from 6.1 per cent in August, she said, adding this was still notably above the figure at the end of last year.
US inflation has edged higher since Trump launched his tariff policy shortly after returning to the White House, hitting both allies and adversaries with steep duties in a bid to reshape America鈥檚 trade relationships.
Trump and his economic allies continue to insist that any increase in inflation will be limited in scope, and have urged the US Federal Reserve to swiftly cut rates to support the economy.
At the same time as inflation has risen, the US labor market has slumped, with just 22,000 jobs created last month, according to Labor Department data.
Against that backdrop, the Fed cut its key lending rate by a quarter percentage-point earlier this month, bringing its benchmark lending rate to between 4.00 and 4.25 per cent.