The numbers: A measure of how Americans view the strength of the economy fell to the lowest level in almost three years, reflecting growing worries about the U.S. trade war with China that’s led to higher and higher tariffs.

The final consumer sentiment survey fell to 89.8 in August from an early estimate of 92.3 and a 98.4 reading in July, the University of Michigan said Friday.

It’s the lowest mark since October 2016. Just a year and a half ago, the index hit 101.4 to mark the highest level since 2004.

What happened: The sharp decline in consumer sentiment stemmed from increasingly negative views of the one-third of respondents that brought up the tariffs on their own. They worry the dispute will increase inflation, reduce incomes and raise unemployment.

Many Americans still don’t appear to be fazed by the trade fight, however. Another closely followed measure of attitudes known as consumer confidence remained near an 19-high in August.

Part of the divergence reflects differences in the surveys. The confidence index tracks more closely with how Americans view their own job security and the strength of the labor market.

From that standpoint, the economy is doing pretty good. Layoffs and unemployment are near a 50-year low, incomes are rising and jobs are still plentiful. That’s been enough to extend a more than 10-year-old economic expansion and keep the U.S. out of recession.

Read: Consumer spending surges in July, but low inflation paves way for Fed to cut rates

The sentiment survey, on the other hand, tends to reflect how Americans view the economy more broadly, including the health of the financial markets. Stocks fell sharply in early August after the trade war with China heated up, though some of the losses have since been recovered.

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Big picture: So far the storm clouds precipitated by the trade war with China have not dented consumer confidence enough to threaten the economy, but analysts are watching closely. The sentiment survey certainly adds to the worries.

What they are saying? “Trump’s tariff policies have been subject to repeated reversals amid threats of higher future tariffs. Such tactics may have some merit in negotiations with China, but they act to increase uncertainty and diminish consumer spending at home,” said Richard Curtin, chief economist of the sentiment survey.

Market reaction: The Dow Jones Industrial Average DJIA, +1.33% and the S&P 500 index SPX, +1.59% rose in Friday trades. Stocks had surged on Thursday after China said it would hold off a response to the latest increase in U.S. tariffs.