Consumer confidence fell 7 points in February to 98.3, the lowest level since 2021, according to the Conference Board. The drop, the third in a row, reflects growing fear about the economic outlook and policies of the Trump Administration. A Wells Fargo survey shows that more than half of consumers are putting off major financial decisions, including home purchases, because of economic uncertainty. Also in the context of the survey, Trump’s planned tariffs on imports were identified as the top issue highlighted in almost every household and business survey. Since taking office in January, the president has imposed an additional 10 percent tariff on Chinese imports, and a 25 percent tariff on imports from Mexico and Canada that was suspended until March. This month Trump increased tariffs on steel and aluminum imports by 25 percent.
According to economists, the recent unprecedented layoffs of federal government workers by DOGE are “stressing the psyche of consumers.” For the latter, in fact, the mass layoffs represent a fact that creates uncertainty because they consider those jobs the main engine of the U.S. economy.
“Americans are increasingly pessimistic about the economic outlook. No federal government has ever threatened government workers with mass layoffs and it’s starting to scare consumers,” said Christopher Rupkey, chief economist at FWDBONDS, a financial markets research firm that publishes reports on the economy and world markets. “The economy could grind to a halt as early as the first quarter of the year as consumers stay at home,” he added.
