US Consumer Confidence Hits Lowest Level Since May 2020 Amid Economic Concerns
The US consumer confidence index fell to 93 in June, reflecting growing pessimism about the economy and rising fears of recession among Americans.
Overview
- The US consumer confidence index dropped 5.4 points to 93 in June, indicating a negative trend in economic perception.
- Confidence in the economy is at its lowest since May 2020, with significant declines in short-term expectations for income and job market.
- All components of the expectations index weakened in June, contributing to a continued decline in consumer confidence.
- Despite low unemployment at 4.2%, Americans' views on the economy have worsened for six consecutive months due to uncertainty and inflation concerns.
- Consumer fears of a recession rose in June, with inflation predictions expected to reach 4% by the end of 2025, impacting economic outlook.
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Analysis
Center-leaning sources frame the economic narrative with a focus on declining consumer confidence and rising recession fears, reflecting a pessimistic outlook. They emphasize the impact of political decisions on economic stability, suggesting a critical stance towards leadership. The overall tone conveys concern over job market conditions and future economic prospects.
Consumer prices increased slightly in May to 2.4% year-over-year, with the OECD predicting U.S. inflation to rise to 4% by the end of 2025.
The reading fell short of economists' expectations.
An especially large dropoff among Republicans was noted.
Articles (4)
Center (2)
"…Consumer confidence soured in June, erasing some of the boost in shopper attitudes that took hold last month as President Donald Trump rolled back tariffs."
ABC News·20d·"…Americans’ view of the U.S. economy worsened in June, resuming a downward slide that had dragged consumer confidence to its lowest level since the COVID-19 pandemic five years ago."
Associated Press·20d·FAQ
The decline in US consumer confidence in June 2025 was driven by growing pessimism about the economy, rising fears of a recession, and worsening expectations for income and the job market. All components of the expectations index weakened, reflecting concerns about inflation and economic uncertainty despite low unemployment rates.
The consumer confidence index dropped 5.4 points from 98.4 in May to 93.0 in June 2025, marking its lowest level since May 2020 and representing a continuation of a negative trend over several months.
The unemployment rate in June 2025 was low at 4.2%, but despite this, consumer confidence has deteriorated for six consecutive months due to economic uncertainty and concerns about inflation and recession risks.
Consumers expect inflation to reach approximately 4% by the end of 2025, which contributes to their negative economic outlook and declining confidence levels.
Consumer fears of a recession rose in June 2025, adding to the overall decline in consumer confidence as people become more pessimistic about economic prospects.
History
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