Trump Slump Rages On As Consumer Sentiment Nosedives: “Families are Footing the Bill,” Says Groundwork’s Jacquez
Trump Slump Rages On As Consumer Sentiment Nosedives: “Families are Footing the Bill,” Says Groundwork’s Jacquez
Today’s consumer sentiment report is an eye opener, revealing that consumers are increasingly worried about inflation with sentiment declining for the first time in four months. This troublesome report comes on the heels of new PPI data that shows everyday household items could get even more expensive. This new information could not come at a worse time as families across the country gear up for back-to-school season. This week, Groundwork Collaborative and The Century Foundation released a new report finding that President Trump’s policies are driving up costs for back-to-school staples and healthy meals. The report found that American families will pay up to 40 percent more on essential school supplies and over $160 more on lunch-box staples.
Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted with the following statement:
“President Trump never had a plan to make life more affordable for working families and this truth is coming to light for many Americans as consumer sentiment about the U.S. economy takes a nosedive. Every economic indicator points toward higher prices for consumers, a weak labor market for workers, and sluggish economic growth due to the Trump agenda. No matter how many experts he fires, it won’t change the fact that Trump’s chaotic trade policies and the disastrous Republican Budget Law are driving up prices for hardworking Americans across the board as consumers brace for impact. From school supplies and groceries to transportation and utilities, in Trump’s economy, families are footing the bill while the wealthy get tax breaks.”
This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s actions are deeply unpopular and hurting the economy.
Polling:
- According to new data from Morning Consult, Trump’s approval rating among Medicaid recipients fell by 37 points (from 52% to 36%) since his first week in office.
- Pew Research Center reported that Trump’s job approval is at 38%, with 60% of Americans disapproving of his job as president.
- A national UMass poll found that more than half of Americans (59%) believe the country is on the wrong track.
- A poll conducted by Impact Research on behalf of EMILYs List Action found that 45% of women are falling behind economically or only making enough to get by day-to-day. Housing and healthcare costs are the most important to women, according to the survey, and only 24% of women say they are optimistic about their financial future.
Economic Indicators:
- The Preliminary University of Michigan Index of Consumer Sentiment print shows that sentiment fell back about 5% in August, declining for the first time in four months amid rising concerns about inflation. Year-ahead inflation expectations rose from 4.5% last month to 4.9% this month. This increase was seen across multiple demographic groups and all three political affiliations. Long-run inflation expectations also lifted from 3.4% in July to 3.9% in August.
- The Bureau of Labor Statistics reported that the Core Consumer Price Index (CPI) rose by 3.1% over the past year, a six-month high. Driving the increase were higher prices for medical care (4.3%), airline fares (4%), and used cars (4.8%).
- Wholesale prices are on the rise, with the Producer Price Index (PPI) jumping up 3.3% over the past year, with the index for final demand services showing the largest advance since March 2022. Producers are paying more for grocery staples, such as fresh vegetables (up 39% over the past month) and coffee (up 29% over the past year).
Expert Commentary:
- Goldman Sachs economist David Mericle commented on the firm’s latest study that found the majority of Americans are paying the price for Trump’s tariffs: “We stand by the results of this study. If the most recent tariffs, like the April tariff, follow the same pattern that we’ve seen with those earliest February tariffs, then eventually, by the fall, we estimate that consumers would bear about two-thirds of the cost.”
- UBS Senior Economist Brian Rose wrote following Goldman Sachs’ inflation report: “The downward trend in core inflation has been broken as tariffs start to feed through into retail prices.”
- Groundwork Collaborative’s Executive Director Lindsay Owens said of rising costs for back-to-school essentials: “[Some companies are] exploiting all of the swirl and noise around these tariff announcements to pass along higher prices they know consumers are expecting.”
- Groundwork Collaborative’s Managing Director of Policy and Advocacy Liz Pancotti commented on Groundwork’s new research with The Century Foundation finding that families will face higher back-to-school costs thanks to Trump’s trade war: “President Trump’s tax and tariff policies have turned the back-to-school season into a budgeting nightmare for hardworking American families. From lunch boxes and notebooks to juice boxes and pencils, parents are being squeezed at every turn—paying more for the school supplies and meals their kids need to succeed. No family should have to struggle to afford the basics while the wealthy and well-connected cash in on massive tax breaks they do not need.”
- Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted to Trump’s nomination of Heritage Foundation economist E.J. Antoni to head up the Bureau of Labor and Statistics: “President Trump’s disastrous economic policies are dragging the economy down, but rather than heeding the warning signs, Trump has nominated a sycophant to tell him exactly what he wants to hear. Make no mistake: This selection is a clear assault on independent analysis that will have far-reaching implications for the reliability of U.S. economic data. The Senate should reject this ludicrous nomination outright on a bipartisan basis.” Several conservative economists criticized Antoni’s work:
- Stan Veuger, Senior Fellow at the American Enterprise Institute: “[Antoni’s] work at Heritage has frequently included elementary errors or nonsensical choices that all bias his findings in the same partisan direction.”
- Dave Hebert, an economist at the American Institute for Economic Research: “I’ve been on several programs with him at this point and have been impressed by two things: his inability to understand basic economics and the speed with which he’s gone MAGA.”
- Jessica Riedl, Senior Fellow at the Manhattan Institute: “The articles and tweets I’ve seen him publish are probably the most error-filled of any think tank economist right now. I hope we see better at BLS.”
