Americans' view of their financial future has hit a 12-year low

What’s going on here?

US consumers aren't a very confident bunch these days: Americans' outlook about their financial future slumped to a 12-year low this month – thanks, in large part, to the expected fallout from the White House's tariff plans. Business sentiment isn’t faring better, with recent Federal Reserve (Fed) surveys pointing to struggles across the manufacturing and service sectors.

What does this mean?

Simply put, people and businesses aren’t feeling very optimistic right now. Trade uncertainties are casting a long shadow over economic confidence, even as the job market shows some signs of strength. Manufacturing, in particular, is looking unstable, with reports from three major Fed regions all signaling serious weakness. And on top of that, some mixed readings from the latest purchasing managers index (PMI) surveys suggest the broader economy could be in for a rough spell. Now, it's true that some strong private sector balance sheets have been helping keep things afloat (at least for now), but that cushion could wear thin if this economic uncertainty drags on.

Why should I care?

For markets: More tariff than terrific.

Trade fears have been a major mood killer for investors too, rattling their confidence and shoving many of them to the sidelines. Sure, the US economy has shown some signs of resilience, but focusing on that while ignoring the wider risks could be like picking up pennies in front of the steamroller.across global markets. And as these trends play out, they could reshape the economic landscape for years to come.

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