Americans are growing more concerned about the trade war, and that's bad news for the economy. One in three consumers is worried about tariffs, according to the University of Michigan's consumer sentiment index.
One-in-three consumers is worried about tariffs, according to the University of Michigan's consumer sentiment index.These concerns led the August index to log its largest monthly drop since December 2012. The data also undercut consensus forecasts, which came in at 89.8 points, and not the expected 92.1 points. The number is based on a monthly survey of 600 households and their assessment of financial conditions and the economy.
The trade tactics of President Donald Trump, which have included reversals and threats of future tariffs on China and allies over the past months,"act to increase uncertainty and diminish consumer spending at home," said Richard Curtin, chief economist of the Survey of Consumers.And trends like this aren't easily reversed, Curtin warned.Read MoreThe next round of tariffs on Chinese imports, which will also hit consumer goods, is due to take effect this weekend.
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