Consumer confidence plummets as Republicans express economic concerns

In June 2025, consumer confidence in the United States fell significantly, dropping to a reading of 93, reflecting a 5.4-point decline from the previous month, May. This downturn in consumer sentiment was observed across various political affiliations, with the most pronounced effects felt among Republican respondents. The data was released by the Conference Board and is based on surveys conducted prior to significant geopolitical events. Although an earlier agreement between the United States and China aimed at reducing substantial tariffs initially boosted consumer confidence, increasing concerns surrounding President Donald Trump's economic policies, as well as tensions in the Middle East, have led to heightened uncertainty among consumers. The decline in confidence resulted in a notable contrast to the expectations of economists, who had predicted a one-point increase in consumer confidence. The survey's cutoff preceding June 18 indicated that consumers were growing apprehensive about new tariffs and their potential impacts on prices, directly affecting their purchasing decisions, particularly with electronics and homes, which many consumers have opted to defer. Economists remarked on the rising sentiment of caution, urging businesses and consumers alike to remain wary of the unpredictable economic climate. Stephanie Guichard, senior economist at the Conference Board, highlighted a minimal increase in references to geopolitical issues from previous months, although it remains low on the list of influential factors affecting consumer views. A more pressing concern, as noted by Guichard, was the fear surrounding tariffs, which consumers associate with adverse effects on the economy and rising prices. Senior economist Elizabeth Renter at NerdWallet echoed this sentiment, suggesting that with the unpredictability of future prices, consumers might limit spending, especially when it comes to budgeting for essentials. Additionally, while inflation data has not yet reflected the impact of higher tariffs broadly, specific categories like electronics have seen price increases. As consumers prioritize their spending, the survey revealed a cautious approach toward big-ticket items, with only essential purchases being made. The expectation of a recession within the next year has also risen slightly, with diminished optimism regarding job opportunities and future income. In this cautious economic environment, many consumers are choosing to hold off on unnecessary purchases, reflecting an overall mindset characterized by caution and restraint as they navigate the uncertainties ahead.