Consumer positions were strained in May for the fourth month in a row, even when President Donald Trump re -defined. Reading came to the expected level of economists.
On Friday, survey data at the University of Michigan showed that the feelings of shoppers are now coming near its lowest level in a long time of inflation three years ago. Before that, consumer positions scale did not decrease this extent.
The decrease for months in consumer morale tracks again to inflation fears and recession warnings launched by the Trump’s initial list of fees.
A trade agreement between the United States and China this week cut off the customs tariff between the world’s largest economists and raised an increase in the stock market. Within a few days, the Wall Street companies have eased the recession.
The University of Michigan conducted consumers surveying between April 22 and May 13, a day after the agreement between the United States and China. The results, in turn, may not completely reflect the effect of the United States Agreement China.
The United States of Chinese agreement represents the latest softening of Trump’s drawings, weeks after the White House stopped “mutual definitions” in dozens of countries. Trump also reduced the definitions of the sector targeting cars, and its duties are declining on some goods from Mexico and Canada.
The withdrawal of definitions coincided with data that indicates that the economy is still in a solid state.
Government data this week showed that inflation slightly reduced last month, as it decreased to its lowest level since 2021. In addition, the economy continues to add jobs at a strong pace.
However, the uncertainty waving on the horizon on the economic view.
There is still a set of customs tariffs in place, including a 10 % tax on board that apply to imports from almost all countries. Additional definitions struck the car parts, as well as steel and aluminum.
President Donald Trump will attend a business forum in Abu Dhabi, May 16, 2025.
Brendan Smialowski/AFP via Getty Images
Even after withdrawing, the customs tariff exceeds 30 % on China before Trump takes office, which is a risk to increase prices in a large group of products that include clothes, games and some electronics.
On Thursday, executive officials of Walmart warned against increasing prices that depend on the customs tariffs of wasteless imports such as coffee, avocado, banana and flowers, as well as games and electronics.
Consumers showed signs of weakness last month as retail sales slowed, indicating that shoppers may retreat because they are waiting for the possibility of definitions. This trend poses a threat to the wider economy, because consumer spending represents nearly two -thirds of economic activity.
The American economy initially decreased this year, as it recorded a sharp decrease in strong growth in the last months of 2024.
But there is likely to be an increase in imports before Trump’s tariff is absent from the number, because the account puts imports in an attempt to exclude foreign production from the gross domestic product account. Analysts have warned that reducing GDP due to this trend would not reflect the economic weakness.
