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The indicator measured by the University of Michigan was well below expectations in July, fearing the effects of the tariff dispute with China.
US consumer confidence fell sharply in July due to worries over the effects of cross-tariffs between the country and China on the economy.
The University of Michigan reported today that the indicator stood at 97.1 points, less than the 98.2 of the month. previous and lower expectations, which indicated a lighter drop to 98 points.
This is not a collapse. The figure remains high thanks to the fact that the labor market remains healthy and that the tax cuts promoted by the Donald Trump government keep it high.
But this reveals the blow to the confidence that the president's decision to impose has engendered. tariffs on Chinese products, which Beijing reacted with retaliation. According to the report, worries over the conflict "accelerated considerably in early July."
In fact, the level of unfavorable benchmarks for the government's economic policies was tied to the 2013 records, while there was a fiscal crisis led to the closure of the US government apparatus, a known scenario under the name "shutdown".
Michigan University Survey Director Richard Curtin noted that "continued strength is due to favorable employment and income prospects". However, he added that "plans to extend tariffs on Chinese products could increase consumer concerns about the impact on their own financial situation."
The index of economic conditions also deteriorated from 116.5. points from June to 113.9 in the current month. At the same time, the expectations indicator edged up from 86.3 points last month to 86.4 in July.
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