Why is US consumer confidence at a record low?

This episode of World Business Report explores the paradox of a strong US labor market and booming stock prices juxtaposed with record-low consumer confidence. Despite 115,000 new jobs created in April and market highs, Americans remain deeply pessimistic due to persistent inflation, especially soaring gas prices that directly impact daily life. Joanna Hsu from the University of Michigan’s Institute for Social Research explains that gas prices are a unique stressor because they are unavoidable and universally felt. Chris Lowe, chief economist at FHN Financial, attributes the disconnect to stagnant wage growth, rising inequality, and consumers' expectations of declining real incomes. The episode also covers a legal victory for small business Burlap and Barrel, which successfully challenged Trump-era tariffs, highlighting how large corporations often avoid costly legal battles. Meanwhile, Mexico and Canada are strengthening economic ties amid US trade uncertainty, while tech giants like Meta are removing end-to-end encryption from Instagram DMs citing safety concerns. Finally, rising AI-driven chip costs are forcing Nintendo and Sony to consider price hikes for gaming consoles, threatening affordability and potentially stifling innovation in the gaming industry. The episode paints a picture of economic resilience masked by widespread financial anxiety and structural challenges. Key takeaways include: 1) Consumer confidence is decoupled from macroeconomic indicators due to inflation and cost-of-living pressures; 2) Small businesses are increasingly pivotal in challenging government trade policies; 3) Geopolitical and technological shifts are reshaping regional trade dynamics; 4) Privacy and security trade-offs are becoming central in tech policy; 5) Rising hardware costs threaten accessibility and innovation in the gaming industry.