US consumer confidence improves slightly in July, but Americans remain
concerned about tariffs
[July 30, 2025] By
MATT OTT
WASHINGTON (AP) — Americans’ view of the U.S. economy improved this
month, but Americans remain concerned about the impact of tariffs on
their economic futures.
The Conference Board said Tuesday that its consumer confidence index
rose two points to 97.2 in July, up from 95.2 the previous month.
The increase in confidence was in line with analysts’ forecasts.
In April, American consumers’ confidence in the economy sank to its
lowest reading since May 2020, largely due to anxiety over the impact of
President Donald Trump’s tariffs.
A measure of Americans’ short-term expectations for their income,
business conditions and the job market rose 4.5 points to 74.4, however
that’s still significantly below 80, the marker that can signal a
recession ahead.
Consumers’ assessments of their current economic situation inched down
by 1.5 points to 131.5.
Tariffs and the impact they could have on personal finances remains
respondents’ greatest concern, the Conference Board said.
Trump’s aggressive and unpredictable policies — including massive import
taxes — have clouded the outlook for the economy and the job market,
raising fears that the American economy is headed toward a recession.
Consumers’ fears of a recession during the next 12 months declined
slightly in July but remain elevated and above last year's levels.
Also Tuesday, the International Monetary Fund upgraded its economic
outlook for the U.S. and the world this year and next because Trump’s
protectionist trade policies so far appear to be doing less damage than
many expected.
The IMF now forecasts 3% growth for the global economy this year. That’s
down from 3.3% in 2024, but an improvement on its previous forecast of
2.8% growth.
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 Though concerns about inflation
eased in July, it remains a major concern among respondents, who
frequently mentioned higher prices in tandem with tariffs.
Another government report earlier this month showed
that consumer prices rose last month to its highest level since
February Trump’s sweeping tariffs push up the cost of everything
from groceries and clothes to furniture and appliances.
Consumer prices rose 2.7% in June from a year earlier, up from an
annual increase of 2.4% in May. Core prices, which exclude the
volatile food and energy categories, also rose.
Economists pay close attention to core prices because they generally
provide a better indication of where inflation is headed.
In the Conference Board’s survey, respondents’ views of the job
market deteriorated for the seventh straight month, though the
reading remains in positive territory as the U.S. labor market
continues to churn out jobs.
In June, U.S. employers added a surprisingly strong 147,000 jobs and
the unemployment rate ticked down unexpectedly to 4.1%.
However, those headline numbers masked some weaknesses as the U.S.
economy contends with fallout from Trump’s economic policies.
The Labor Department said Tuesday that U.S. employers posted 7.4
million job vacancies last month, down from 7.7 million in May. The
number of people quitting their jobs — a sign of confidence in their
prospects elsewhere — dropped last month.
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