The rebound was especially strong after the U.S. and China reached a temporary deal to lower mutual tariffs.

But their outlook just might be improving.

Consumers have been saying how fed up they are with inflation. But they keep on buying stuff, says Stephen Brown at Capital Economics. 

Pessimism can start to shape reality if people put off asking for a raise or decide to take a worse job then they might have otherwise.

Conference Board surveys point to unease about job security and raise questions about Americans’ future spending.

The Conference Board reported the biggest monthly decline in consumer confidence since 2021. And the University of Michigan reported a sharp increase in inflation expectations.

Inflation expectations vary by political affiliation, especially with tariffs in the mix. But fears of inflation can be self-fulfilling.

Economic uncertainty has combined with a persistent lack of affordability to chill the housing market.

A key measure of consumer confidence finds consumers anticipating worse economic conditions.

Confidence was expected to continue to rise. Consumers cite inflation, politics and tariffs as factors they see influencing the economy.