Background on the Consumer Confidence Index
The Consumer Confidence Index (CCI) is a key economic indicator that measures the confidence of US consumers regarding the state of the economy. It is calculated by The Conference Board, a nonprofit organization that provides insight and analytics to businesses and policymakers.
Who is The Conference Board?
The Conference Board was established in 1949 and has been a trusted source of economic research and analysis for businesses, governments, and individuals. Its Consumer Confidence Index is widely recognized as a reliable gauge of consumer sentiment.
Recent Decline in Consumer Confidence
The September CCI plummeted to 94.2, marking the lowest level since President Donald Trump’s tariffs were implemented in April, according to data released on Tuesday.
The Conference Board’s Index of Consumer Confidence fell by 3.6 points from the revised 97.8 in August, indicating growing concerns about inflation.
Market Expectations
Analysts had anticipated a smaller decline, according to the consensus published by MarketWatch.
The CCI had not been this low since April, when President Trump announced massive tariffs, sparking widespread worry.
Reasons for the Decline
According to economist Stephanie Guichard of The Conference Board, survey respondents in September frequently mentioned prices and inflation as primary factors influencing their economic outlook.
“Encuestados hicieron referencia con mayor frecuencia en septiembre a los precios y la inflación, que se han convertido una vez más en los principales factores que influyen en su visión de la economía,” Guichard stated in a press release.
She further added, “Las referencias a los aranceles disminuyeron este mes, pero se mantuvieron altas y continuaron asociadas a la preocupación por el aumento de los precios.”
Inflation and Tariffs Under Trump’s Trade Policy
Since President Trump initiated his tariff policy in January, shortly after returning to the White House, US inflation has seen a slight uptick.
In an effort to reshape the United States’ trade relationships, Trump has imposed substantial tariffs on both allies and adversaries.
Key Questions and Answers
- Q: Who is The Conference Board? A: Established in 1949, The Conference Board is a nonprofit organization that provides economic research and analysis to businesses, governments, and individuals. Its Consumer Confidence Index is a widely recognized gauge of consumer sentiment.
- Q: What caused the recent drop in US consumer confidence? A: The decline is primarily attributed to growing concerns about inflation, with consumers citing price increases as a significant factor influencing their economic outlook.
- Q: How has President Trump’s trade policy impacted inflation in the US? A: Since implementing his tariff policy in January, US inflation has seen a slight increase. Trump’s efforts to restructure trade relationships through substantial tariffs on allies and adversaries have contributed to this rise.
