The consumer’s confidence was attributed in June, erasing part of the impulse in the attitudes of the buyers who scared last month when President Donald Trump retreated the tariffs, showed the data of the Conference Board on Tuesday. Reading did not reach the expectations of economists.
The new data resume a tendency to make consumer confidence that dates back to the beginning of 2025. Last month, an explosion of enthusiasm seemed to take the discomfort, but the new data suggest that buyers are still concerned about the path of the US economy.
The decrease in consumer confidence clung to the entire age, the demography of income and political affiliations, said the conference board, pointing out a especially large fall among Republicans.
“Consumer confidence weakened in June, erasing almost half of May’s acute profits,” said Stephanie Guichard, a senior economist of global indicators at the Conference Board, in a statement.
In recent weeks, Trump has returned some of his most steep taxes, relieving the costs imposed on companies and relieving concern about a strong increase in inflation. Importers generally transmit a part of the highest tax burden in the form of price increases.
A commercial agreement last month between the United States and China reduced Tit rates per eye between the two largest economies in the world and caused an increase in the stock market. In a matter of days, Wall Street companies softened their recession forecasts.
Even so, a general 10% rate applies to almost all imports, except semiconductors, pharmaceutical products and some other items. However, these rates are in the legal limbo, after a couple of decisions of the Federal Court at the end of last month.
However, warning signals point to the possibility of high prices in the coming months.
Retailers nationwide such as Walmart and Best Buy have expressed alarm about the possibility that prices can raise as a result of encumbrances.
A person buys in a deer clothing store on June 17, 2025 in Austin, Texas.
Brandon Bell/Getty images
The Organization for Economic Cooperation and Development, or the OECD, said that this month hopes that US inflation reaches 4% at the end of 2025, which would mark a strong increase in current levels.
The federal president, Jerome Powell, in recent months, warned about the possibility that tariffs can cause what economists call “stagning”, which is when inflation increases and the economy slows down.
The stagflation could put the central bank in a difficult position. If the Fed increases interest rates, it could help relieve inflation, but can risk an economic recession. If the Fed reduced rates in an effort to stimulate economic growth, the measure could release faster price increases.
The Federal Reserve maintained its stable reference interest rate last week, continuing a waiting approach and being adopted by the Central Bank in recent months, since it observes the possible effects of tariffs.
Speaking at a press conference in Washington, DC, Powell said that tariffs would probably “increase prices and weigh economic activity” in the course of this year. But, he added, the effects would depend on the “final level” of the rates, which have often fluctuated.
“At the moment, we are well positioned to wait to learn more about the probable course of the economy before considering any adjustment to our policy position,” Powell said.
