(WXYZ) — The economy is a topic that's still on everyone's mind as we head into March. A new report shows consumer confidence dropped sharply in February and Americans are becoming more pessimistic about the economy with fears over tariffs and inflation.
The Consumer Confidence Index is now at its lowest mark since August 2021, and we wanted to know why. I spoke with a local economist and metro Detroiters to see how they're feeling.
"I do not have any confidence right now. I am one of those pulling back," Desha Johnson of Detroit said.
"Just a little worried. You got to protect yourself and look out for yourself," Gilbert Lee said.
"It is what it is. Hopefully, things will get better in the near future," Ronnie Elzie said.
Economic uncertainty and rising inflation are weighing heavily on the minds of Detroiters.
Johnson is just one person I spoke with who is feeling the financial strain and trying to save money.
"You can't go out shopping, you can't go out to restaurants, you have to eat at home. You even have to be careful of the price of groceries because of the cost of groceries right now," Johnson said.
While many are feeling the pinch in their wallets with the rising costs, Lee is another person who is cutting back to save money.
The report shows that overall consumer confidence is down across all age categories, caused by uncertainty surrounding President Donald Trump's tariffs, immigration and other policies.
"When tariffs were put into place back in 2018-2019, the economy was in a much stronger position and certainty the consumer was in a much stronger position," Michigan State University Supply Chain Management Professor Jason Miller said.
Miller said consumers won't see relief right now.
"Prices are very unlikely to decline unless we go into a steep recession, at which point the prices and the potential minor deflation is a moot point," Miller added.
Sterling Harrison said he is optimistic but is still pulling back.
"We just got to get through the hard times and we'll get through this," Harrison said. "Budgeting more, cutting back on lunches downtown, unfortunately just trying to survive."
