Di Yi Cai Jing·2025-08-17 11:55Consumer Sentiment and Spending Trends - The proportion of Americans only making minimum payments on credit cards is nearing historical highs, indicating increased financial strain among consumers [4] - The University of Michigan's consumer confidence index fell to 58.6 in August, down from 61.7 in July, driven by pessimism regarding the current economic situation [2][3] - Credit card spending growth has slowed compared to debit card spending, marking a shift after 14 consecutive quarters of higher credit card growth [2][3] Economic Impact of Tariffs - New tariffs announced in August have reignited concerns about inflation linked to Trump's trade policies, affecting consumer sentiment across income groups [3] - The core personal consumption expenditures (PCE) inflation is expected to rise to 3.3% in the fourth quarter due to tariff impacts on core goods prices [5] - Companies are beginning to pass on additional tariff costs to consumers, with expectations of strategic price increases as final tariff rates become clearer [6] Consumer Financial Behavior - There has been a significant increase in personal loans, with a year-on-year growth of 18% in Q1, as consumers shift away from high-interest credit card debt [4] - Consumers are becoming more cautious about spending on durable goods, reflecting a broader trend of reduced consumer confidence and spending [4] - The average interest rate for personal loans is 12.58%, compared to 20.13% for credit cards, indicating a shift in borrowing preferences [4] Inflation Expectations - Consumer inflation expectations for the next year rose to 4.9% in August, up from 4.5% in July, with long-term expectations also increasing [4] - The July Consumer Price Index (CPI) showed a year-on-year increase of 2.7%, with core CPI rising to its highest level in five months at 3.1% [5]