On December 24, the Financial Association reported (edited by Niu Zhanlin) that in the context of Trump about to bring a series of policy changes, Americans generally feel worried about the economic outlook, as the Consumer Confidence in the USA declined for the first time in three months in December.

Data released by the World Federation of Large Enterprises on Monday showed that the Consumer Confidence Index in the USA dropped to 104.7 in December, far below the expected value of 113.2, with the previous figure being 112.8.

The report also shows that both the Consumer Present Situation Index and Expectations Index unexpectedly declined in December, with the Present Situation Index dropping from 140.9 to 140.2 and the Expectations Index falling from 92.3 to 81.1.

Dana Peterson, chief economist of the World Federation of Large Enterprises, stated in a release that the rebound in the Consumer Confidence Index did not persist in December, as the Index fell back to the median level of the Range it operated within over the past two years.

Surveys show that consumers are increasingly mentioning politics and tariffs, with 46% of respondents expecting tariffs to raise living costs and 21% expecting tariffs to create more jobs in the USA.

Out of concerns about increased tariffs, more respondents believe that they should purchase durable goods now to avoid significant price hikes in the future.

Additionally, consumers' optimism regarding business conditions and their own income prospects has decreased. However, the proportion of respondents believing job opportunities are abundant rose to 37% from the previous month, while those finding it difficult to find work dropped to 14.8%.

Samuel Tombs, the Chief USA Economist at Pantheon Macroeconomics, stated in a report: "The momentum of improved sentiment after the election has quickly faded. The survey cutoff date was December 16, before the Federal Open Market Committee (FOMC) meeting and related stock price declines, so we believe this deterioration may reflect the incoming government's talk of spending cuts, which was not part of Trump's campaign narrative."

Another analysis indicates that politics and potential tariffs are affecting Consumer confidence. Similar to the preliminary survey by the University of Michigan in December, the survey by the World Large Enterprises Association shows that some consumers are making bulk purchases in advance, anticipating that the tariffs proposed by the incoming Trump administration will raise prices next year.

This is obviously unfavorable for the inflation trend, as the Federal Reserve is expected to cut rates only twice next year, recognizing the economy's resilience and high inflation.

Another report released on Monday indicated that new home sales in the USA rebounded last month, as builders and consumers completed trades that were delayed due to Southern storms, and buyers took advantage of substantial sales incentives. Additionally, orders for commercial equipment received by USA factories also increased, marking the strongest monthly growth in over a year.

Editor/ping