Are American Consumers Becoming More Nervous About Big Ticket Purchases?

The following chart suggests that the longevity of the economic recovery combined with the latest concerns over trade wars and potential job losses may be having a negative impact on consumer confidence, particularly as it relates to big ticket purchases.  

Indeed, worries about the Trump administration’s trade policies and the likely negative impact on the U.S. economy prompted a dip in consumer confidence in July, though the sentiment index still remains at a historically high level.

As the second chart indicates, the University of Michigan's consumer sentiment index for the U.S. fell to 97.1 in July of 2018 from 98.2 in June. According to the survey information, this was the lowest reading in six months.