Where Americans stand on the economy

Economic metrics over the past several months have been relatively stable, but you wouldn’t know that from consumer confidence numbers.

Through the first half of the year, consumer confidence has been all but stable. Now, amid rising inflation and unemployment numbers, as well as continued uncertainty over tariffs, new numbers are showing that consumer confidence may be starting to soften.

The latest LSEG/Ipsos Consumer Confidence numbers show that Americans haven’t changed in their views on the current economic climate but are growing increasingly worried about the future.

Below are five charts on how Americans are feeling economically and how this might factor into Americans’ purchasing habits.

1. Consumer confidence ticks down. The past few months saw brief moments of stability in consumer confidence. However, amid rising unemployment and inflation numbers, consumer confidence saw a slight tick down in September.
2. Why consumer confidence ticked down. Americans’ confidence in the investment climate and views of the current economic climate are stable, while expectations for the future and views of the job market have taken steeper falls, especially compared to this time last year. Watch this space.
3. Uncertainty is far from gone. Earlier this year, we wrote about how uncertainty was playing a major role in Americans’ feelings about the economy. Levels of uncertainty appear to be down between now and then, but they are far from gone.
4. Young Americans are feeling especially down. Right now, there are a lot of forces working against young Americans economically. Rising prices can hurt young Americans particularly hard, while there are fears that AI-related job displacement among early career employees may in fact be materializing.
5. Where Americans would cut back. Should prices continue to rise, restaurants may end up being the hardest hit, while large portions of those in the market for electronics may also have to cut back. Essentials like medications, detergents, and dairy products may see less disruption, though not none.

Economic uncertainty is down, but it’s far from gone. Worries over tariffs, inflation, and employment are all posing questions at the same time, contributing to the recent slight dip in consumer confidence, even as views of the current economic environment remain stable. Uncertainty is also where partisanship affects consumer confidence: Republicans see the light at the end of the tunnel. Democrats don’t.

Economic sentiment also looks vastly different among young Americans, who are contending with the same uncertainty combined with additional AI-related job uncertainty. It’s a troubling time for the nation’s youth.