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One in three consumers worry about rates, according to the Consumer Confidence Index of the University of Michigan.
These concerns led the August index to record its largest monthly decline since December 2012. The data was also lower than the consensus forecast, which was 89.8 points, not the 92.1 points expected. The number is based on a monthly survey of 600 households and their assessment of financial conditions and the economy.
President Donald Trump's trade tactics, which included reversals and threats of future tariffs about China and its allies over the last few months, "Let's take action to increase uncertainty and reduce consumer spending at home," said Richard Curtin, chief economist of the Consumer Survey.
And trends like this are not easily reversed, Curtin warned.
The next round of tariffs on Chinese imports, which will also affect consumer goods, is expected to come into effect this weekend.
Confident consumers and their healthy expenses are an essential part of the American economy. In the second quarter, when GDP growth slowed, some compared it to the first three months of this year. Consumers were cited as one of the reasons the economy continued to roar.
If Americans cut their discretionary spending in the future, the economy would probably suffer the consequences.
Earlier this week, second-quarter GDP growth was revised down from 2.1% to 2%.
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