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Marketplace All-in-One

The relationship between consumer mood and spending? It's complicated

Marketplace All-in-One

Marketplace

News, Business

4.81.3K Ratings

🗓️ 27 August 2025

⏱️ 27 minutes

🧾️ Download transcript

Summary

On Tuesday, the Conference Board reported a slight drop in consumer confidence, driven by worries about available jobs and future incomes. But a dip in confidence doesn't always mean people spend less. Also on the show: Where have all the working moms gone? "Marketplace" host Amy Scott talks with Abha Bhattarai from the Washington Post about how women are losing workforce participation gains made during the pandemic. Plus, what ending the 'de minimis' exemption could mean for overseas retailers and online shoppers.


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Transcript

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0:00.0

On the show today, we'll catch up on some of the news you might have missed, and we'll play with some Lego.

0:08.4

From American Public Media, this is Marketplace.

0:16.9

In Denver, I'm Amy Scott in for Kai Rizdahl.

0:23.1

It's Wednesday, August 27th.

0:25.2

Good to have you with us.

0:26.6

You can forgive us for leaving this one out yesterday amid the whole president attempting to fire a Fed governor situation.

0:33.9

But there was some news about the biggest engine of the U.S. economy, yes, the consumer and how folks are feeling these days.

0:43.2

And it's not great, according to the Conference Board's latest consumer confidence index.

0:48.1

A small decline in August reflects people's worries about their jobs and future income.

0:54.2

A separate survey from the University of Michigan also showed a decline in sentiment this month.

1:00.0

But as we know, that doesn't always show up in less spending.

1:04.3

Those numbers come out on Friday.

1:06.7

And as Marketplace's Mitchell Hartman reports, the relationship between mood and spending is complicated.

1:13.7

For a while now, Americans have been getting more worried about their ability to keep a job and earn a paycheck.

1:19.7

Stephanie Gishar at the conference board says every month since the beginning of the year.

1:24.3

We see a decline in the share saying that jobs are plentiful and increase

1:29.1

in the share saying that jobs are hard to get. Consumers are also worried that tariffs will drive up

1:35.0

prices and squeeze household finances. They say they plan to spend less going forward.

1:40.8

Including for big ticket items, but also for services, like going on vacation, going to restaurants.

1:48.3

Except these plans to be more frugal, Gishar says we've heard them before.

1:53.3

I mean, like a year ago, they were telling us they were going to be cautious, and at the end of the day, they were not.

1:59.5

Instead, consumers kept spending it up.

...

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