DENVER — New economic data shows consumer confidence is dropping quickly, according to the U.S. Department of Commerce, suggesting the country is growing anxious as to how President Donald Trump's policies will play out in the coming months.
February saw the biggest monthly decline since August 2021. The low confidence is showing up in earnings reports for big retailers, housing markets and more. It's an indicator people want to spend less.
"There are signs that consumers are getting anxious," financial adviser Bruce Allen said.
The two big reasons behind the dropping confidence: tariffs and inflation. New tariffs against Mexico and Canada go into effect Tuesday. And consumer prices were up 3% in January, compared to the year before.
Despite that, Allen said the U.S. has been here before, and there are systems in place that should help.
"The data suggests that even if the economy gets very bumpy and very rocky, that long-term, the economy will rebound and will come out of this," Allen explained. "Long-term markets tend to perform pretty well, but it could be a bumpy future for the next several months."
Allen suggests a few steps to protecting your money, particularly investments. First, he said Coloradans who are only invested in the U.S. stock market can diversify away from that. Investors with a broad-based portfolio can also consider diversifying.
"It might make some sense to visit with your financial adviser to talk about how to re-balance your portfolio," Allen suggested.
Allen also said everyone should make sure to build up their savings. Denver7 has tips on how to create a budget to set aside money for your emergency fund here.