Discontent is not just restricted to the pocket, but also to the political environment
Rising gasoline and food prices, political uncertainty and fear of job market stagnation bring down the mood of Americans
Consumer confidence in the United States fell to the lowest level in more than a decaderaising an alert about the population’s perception of the economy. According to data released by The Conference Board, the index that measures the degree of optimism among Americans dropped to 84.5 points, the worst result since 2014 and below economists’ expectations.
The drop reflects a general increase in pessimism among consumerswho report increasing difficulty in dealing with the cost of living, especially with gasoline and food prices, which continue to put pressure on family budgets. According to the Conference Board, these two items were the most spontaneously cited by interviewees as factors of economic concern.
In addition to persistent inflation in essential items, the survey shows that mentions of politics, the job market and health plan costs have increased compared to the last survey. The result indicates that discontent is not just restricted to the pocket, but also the political environment and the prospects for economic stability in the medium term.
The consumer confidence index is considered an important thermometer of the American economy, because it directly influences consumer decisions, such as purchases of durable goods, personal investments and willingness to take on debt. A reading below 100 points already signals more pessimism than optimism, and the current level reinforces the perception that consumers are increasingly cautious.
Analysts highlight that the scenario is worsened by the expectation of little dynamism in the job market in 2026. According to projections cited by Bloomberg, experts estimate that the employment should remain stagnantwithout significant creation of vacancies or significant advances in real wages. This reduces families’ confidence that their financial situation can improve in the short term.
Even with official indicators pointing to the resilience of the American economy in some sectors, consumer sentiment reveals a disconnect between macroeconomic data and the population’s daily experience. For many Americans, the high cost of basic products and uncertainty about employment and income weighs more than positive numbers released by the government.
Economists warn that persistently low confidence could have direct effects on economic growth, as insecure consumers tend to reduce spending, affecting sectors such as retail, services and industry. The movement also increases pressure on economic authorities and the government, especially in a year marked by political disputes and debates about inflation, interest rates and social policies.
The new decline in the index reinforces the perception that, for a large part of the population, the United States economy does not convey a feeling of security, even after years of post-pandemic recovery.
*This text does not necessarily reflect the opinion of Jovem Pan.
