By Creditvana Staff | Updated September 12, 2025
If you’ve been feeling less confident about the economy lately, you’re not alone.
Multiple new reports show that consumer sentiment is slipping, weighed down by persistent concerns about inflation, job security, and access to credit. While inflation expectations remain steady in the long run, the short-term economic outlook feels increasingly uncertain for many Americans.
Let’s break down the latest findings and what they mean for your money.
1. Worried About Jobs? You’re Not Alone
According to the Federal Reserve Bank of New York’s August Survey of Consumer Expectations, Americans are less confident than ever about finding a job if they lose theirs — hitting the lowest level since the survey began in 2013.
Key highlights:
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Only 44.9% of Americans believe they’d be able to find a new job within a year if they lost theirs.
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39.1% believe the unemployment rate will rise over the next year.
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Job loss fears ticked up slightly to 14.5%, above the 12-month average.
These concerns reflect a cooling labor market — something to watch if you’re job hunting or considering a career change.
2. Inflation Expectations Inch Up
Consumers expect prices to continue rising, though not dramatically:
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Short-term (1-year) inflation expectations rose to 3.2% in August (up from 3.1%).
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Medium- and long-term expectations held steady at 3% and 2.9%, respectively.
Notably, expectations for price increases in essentials like food (5.5%) and gas (3.9%) were unchanged for the third straight month — a sign that consumers may have adjusted to these elevated costs, at least mentally.
3. Spending, Income, and Credit Access in Focus
Despite economic uncertainty, Americans still expect to spend 5% more in the next year — a slight uptick. But there’s a growing concern around access to credit:
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More households say it’s harder to get credit now than a year ago.
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Even fewer believe access to credit will improve over the next 12 months.
Meanwhile, expected income growth remains modest at 2.9%, and earnings growth expectations dipped to 2.5%, a bit below the recent average.
4. Mixed Signals from Major Consumer Sentiment Indexes
🔹 University of Michigan Consumer Sentiment Index (August):
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Sentiment fell for the first time in four months to 58.2, down from 61.7 in July.
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Concerns about inflation and purchasing power drove the decline.
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Sentiment remains 10% below levels from this time last year.
🔹 Conference Board’s Consumer Confidence Index (August):
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Dropped slightly to 97.4 (from 98.7 in July).
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The Expectations Index (short-term outlook) stayed low at 74.8 — a level often associated with potential recession warning signs.
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Concerns over job availability and inflation continue to drag confidence down.
5. What Is Consumer Sentiment — and Why Should You Care?
Consumer sentiment measures how people feel about the economy — including their outlook on jobs, income, inflation, and personal finances. It’s based on surveys, not spending data, but it’s a powerful early signal of where the economy might be headed.
Why it matters:
In 2023, consumer spending made up nearly 68% of U.S. GDP. When people feel pessimistic, they spend less — and that can slow economic growth, potentially pushing the country closer to a recession.
6. Many Americans Are Struggling to Stay on Track Financially
A recent survey from NerdWallet and The Harris Poll found that:
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90% of Americans set financial goals for 2025.
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But 45% say they’re not on track to hit them — or unsure where they stand.
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22% have already adjusted their goals due to economic challenges.
Still, there’s hope. Two-thirds of Americans say they feel more optimistic about making progress in the second half of the year.
💡 What You Can Do
If you’re feeling the effects of economic uncertainty, here are a few actionable steps:
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Revisit your budget: Adjust your spending to account for inflation and rising costs.
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Boost your emergency fund: If job security is shaky, aim to build up 3–6 months of essential expenses.
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Be cautious with credit: With access tightening, focus on improving your credit score and paying down debt.
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Track economic trends: Understanding how sentiment impacts spending can help you anticipate changes in the job market and inflation.
🧠 Pro Tip: Use Creditvana’s free budgeting tools to monitor your spending and stay on track with your 2025 goals — no matter what the economy throws at you.
📅 What’s Next?
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University of Michigan releases its next sentiment report on Friday, Sept. 12
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Conference Board updates its Confidence Index on Tuesday, Sept. 30
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New York Fed will release its next consumer expectations data on Tuesday, Oct. 7
Stay tuned — we’ll break it all down for you when the numbers come in.
Bottom Line:
American consumers are feeling the pressure. Job security fears, inflation worries, and tighter credit are all contributing to a drop in confidence. But by staying informed and adjusting your financial strategy, you can still make progress toward your goals — even in uncertain times.
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