Consumer confidence fell slightly this month as Americans continue to brace for financial impact, reported the Associated Press. The Conference Board said this week that its consumer confidence index fell by 1 point to 94.6 in October from an upwardly revised September reading of 95.6.
“One year ago, the reading was 109.5. A measure of Americans’ short-term expectations for their income, business conditions and the job market dipped by 2.9 points to 71.5, remaining well below 80, the marker that can signal a recession ahead. However, consumers’ assessments of their current economic situation rose 1.8 points to 129.3,” wrote AP.
Meanwhile, consumer prices increased 3% in September from a year earlier, the Labor Department said last week—the highest since January and up from 2.9% in August.
“The report offers the only official glimpse of the economy this month amid the government shutdown, highlighting the continuing impact of President Donald Trump’s tariffs on consumers, some of which began to take effect in August,” wrote The Washington Post.
The continual above-average increases have left the cost of everyday goods and services about 25% higher than before the pandemic, the Post said.
“Despite sweeping tariffs, higher costs have filtered into consumer prices more slowly than expected. Many duties didn’t take effect until weeks or months after the announcement, and companies stockpiled goods before the levies hit—inventories that are now largely depleted. This summer, consumer prices began rising across a broader range of goods,” the Post wrote.