Consumer Confidence and Economic Uncertainty: Tariffs, Inflation, and Younger Consumers

Consumer Confidence in August

• 📉 Consumer confidence slightly decreased in August, with inflation expectations climbing after a period of decline.
• neutral Consumers are largely in a neutral state, waiting for the resolution of the tariff situation and for inflation to subside.

Generational Economic Outlook

• 👴 Older consumers exhibit more positivity compared to younger demographics.
• 👶 Younger consumers (born 1990 or later) show less positivity, potentially influenced by past economic events like the tech bubble burst, 9/11, the financial crisis, and housing market unaffordability.
• 💰 Younger consumers also possess less wealth, making them more sensitive to economic downturns.

Economic Uncertainty and Growth

• ❓ Uncertainty surrounding tariffs and inflation is causing both consumers and CEOs to remain in neutral, impacting economic growth.
• 🏠 High interest rates, influenced by the Federal Reserve, make the housing market inaccessible for many younger consumers.
• 📈 Resolving uncertainty in interest rates, tariffs, and costs is crucial for normalizing the economy and stimulating growth and confidence.

Purchasing Intentions

• 🚗 Purchasing intentions for cars (new and used) rose in August, despite pressures from tariffs.
• 🛠️ Cars are viewed as essential tools for daily life (commuting to work and school) rather than luxury items, driving demand when existing vehicles reach end-of-life.