largest monthly decline since 2012

The latest impression of the University of Michigan's consumer confidence index was set at 89.8 for August, down from the preliminary reading set two weeks ago.

The index was at 98.4 in July, making it the largest monthly decline since December 2012. The economists surveyed by Refinitiv were expecting final consumer confidence to reach 92.1.

This decline comes after a month of turbulence in the trade war between the United States and China.

"Trump's pricing policies have been subject to repeated reversals of the threat of higher future rates, and such tactics may have some merit in the negotiations with China, but they act to increase uncertainty and reduce consumer spending at home, "Richard Curtin, chief economist of Consumer Survey, said in a statement.

On August 1, President Donald Trump announced that the United States would impose tariffs on an additional $ 300 billion worth of goods imported from China. Rates were originally scheduled to come into effect in September, but some were delayed until December 15 or removed.

China announced last week its intention to retaliate by applying new tariffs on US products and resuming those on cars and auto components.

The survey found that consumers who mentioned unsolicited rates were more likely to expect inflation and an increase in unemployment. One in three consumers mentioned tariffs spontaneously, Curtin said.

"Although the overall level of confidence is still consistent with modest gains in consumption, the data has nevertheless increased the likelihood that consumers will be pushed out of the" tariff chasm "in the coming months," Curtin said.

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