The Consumer Confidence Index fell to its lowest level since June, dropping 9.1 points to 125.1, well below what economists had been expecting. Weakening confidence could erode consumer spending, which has been a primary engine of the US economy, which would weaken GDP growth. The trade dispute already has depressed business investment. "The escalation in trade and tariff tensions in late August appears to have rattled consumers," Lynn Franco, the board's head of economic indicators, said in a statement.
As the trade war with China drags into a second year, she added, consumers may begin showing some fatigue. The cutoff date for collecting the survey's data was in mid-September, capping a period which included sharp increases in tariffs on Chinese imports and stinging losses on Wall Street. According to the survey, fewer people believe current business conditions are good and jobs are plentiful.
Fewer than one in five now say business conditions will improve in six months' time, that more jobs will become available or that their incomes will increase. The share of those expecting business conditions to worsen also crept four points higher to 14.3 percent.