In June 2025, Americans' perception of the U.S. economy took a significant hit, with the consumer confidence index falling to 93, a drop of 5.4 points from May's 98.4.

This decline in consumer confidence has erased nearly half of the gains made in the previous month, surprising economists who had only anticipated a minor one-point increase.

Concerns surrounding President Donald Trump's tariffs have been a major factor in this downturn, heavily influencing consumer sentiment.

Widespread fears about rising prices due to tariffs are impacting budgeting and spending decisions, as noted by economist Stephanie Guichard.

While overall inflation data has yet to show the effects of higher tariffs, specific items like electronics have seen price increases, leading consumers to delay purchases.

The survey indicated a slight rise in the number of consumers expecting a recession within the next year, reflecting increased caution in making significant purchases.

Nearly 70 percent of consumers surveyed believe a recession is likely within the next year, which is influencing their spending habits.

Despite low unemployment at 4.2%, inflation concerns persist, with consumer prices rising to 2.4% in May 2025, up from 2.3% in April.

Despite the negative outlook, the U.S. labor market continues to add jobs, with 139,000 jobs added in May 2025, although hiring rates have slowed due to tariff uncertainties.

The survey data was collected shortly before U.S. military action targeting Iran's nuclear sites, which may have exacerbated consumer concerns.

A key indicator of short-term economic expectations dropped significantly to 69, well below the critical threshold of 80, suggesting potential recession fears.

Consumers' evaluations of the current economic situation also worsened, decreasing by 6.4 points to 129.1, reflecting growing unease.