Consumers are in neutral as they wait for tariffs to play out, says Conference Board's Steve Odland

Consumer Sentiment - Consumer confidence experienced a slight decrease in August due to increasing concerns about the labor market [1] - Younger consumers show less positivity, while older consumers are more positive, resulting in a net neutral consumer sentiment, largely influenced by the tariff situation [2] - Consumers are waiting for the tariff situation to resolve [2] - Inflation, particularly in everyday items like groceries and gas, continues to impact consumers [3] - Expectations of a recession are increasing among consumers, despite their perception of their personal financial situations as being okay [8] Economic Uncertainty - CEO confidence is also neutral, awaiting clarity on costs and inflation, emphasizing the need for trade deals to be finalized [3] - Uncertainty surrounding inflation and interest rates is creating a pall over the economy and reducing growth [10] - A normalized situation with interest rates, tariffs, and costs is needed to stimulate growth and improve confidence [10] Consumer Behavior - Purchasing intentions for cars, both new and used, increased in August, despite tariff-related price pressures [10] - Cars are viewed as a necessity for daily life, driving demand even amidst economic uncertainty [11][12] Generational Impact - Younger consumers (born around 1990 or later) may be more pessimistic due to experiencing multiple economic crises early in their lives [4][5] - Younger consumers have the least wealth, making them more sensitive to economic uncertainties [7]