The consumer’s feeling of recession fears, and uncertainty in customs tariffs

Consumer morale decreased sharply in April with an increase in inflation for 12 months to the highest level since 1981 in the middle of the president Donald Trump Trade war escalation.

On Friday, consumer polls at Michigan University stated that she Consumer feelings The index fell to 50.8 this month from 57 in April, a sharp drop from 54.5 expected by the Reuters economists. The fourth consecutive monthly decrease in consumer morale was distinguished.

“This decrease was wide and unanimously over age, income, education, geographical region and political affiliation,” said Consumer Director Joan Hsu.

“Feelings have now lost more than 30 % since December 2024 amid increasing concerns about the developments of the trade war that swooped throughout the year. Consumers have multiple warning signs that raise the risk of recession: expect expectations in commercial conditions, personal financing, income, enlargement, and all labor markets in the deterioration this month.”

Executive managers of adult banks on the Trump tariff: “Great Disorder”

The report found that consumers’ share expects this Facing unemployment Next year, he increased for the fifth consecutive month. This scale is now more than twice the poll reading in November 2024 and is at its highest level since 2009.

HSU wrote: “This deficiency in the trust of the labor market lies in a sharp contradiction with the past few years, when strong spending has been supported primarily through strong labor markets and entered.”

Federal Reserve Chairman Powell says the definitions that are likely to cause high inflation, can be fixed

Public consumers Inflation It increased from 5 % last month to 6.7 % this month, which is the highest reading since 1981 and represents four consecutive months, noted by the report, “Unusually large increases from 0.5 percent or more.” This increase was seen in all three political affiliations.

Long -term inflation forecast increased from 4.1 % in March to 4.4 % in April, noting that wiping with a particularly large jump among independents surveyed.

What is the timeline of Trump’s definitions that increase prices?

I conducted the Michigan University survey between March 25 and April 8.

This means that it ended before Trump’s announcement on April 9th ​​of a partial pause in the “mutual” tariff, which was reduced to most trade partners to 10 % for 90 days, in addition to an increase in Definitions on Chinese goods To 145 %. Customs tariffs on vehicles, car parts, steel and aluminum are still valid.

Get Fox Business on the Go by clicking here

These definitions have contributed to many economic predictors to walking The American economy enters the recession this year.

Reuters contributed to this report.