Consumer confidence continues to wane as Americans worry about the economy, jobs and their income.
Americans are increasingly anxious about their financial prospects, with a closely watched gauge of consumer confidence slumping to a 12-year low amid growing concerns about tariffs and inflation.
The Conference Board said Tuesday that its consumer confidence index fell 7.2 points in March to 92.9, the fourth straight monthly decline and its lowest level since January of 2021. The reading was short of analysts expectations for a reading of 94.5, according to a survey by FactSet.
The consumer confidence index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. The business group found that the measure of Americans’ short-term expectations for income, business and the job market fell 9.6 points to 65.2. That’s the lowest reading in 12 years and well below the threshold of 80, which the Conference Board says can signal a potential recession in the near future.
The proportion of U.S. consumers anticipating a recession remains at a nine-month high, the board reported.
«Consumer confidence has come under a microscope in recent months as investors worry about retail sales and consumer spending — the engine of the U.S. economy», Bret Kenwell, U.S. investment analyst at eToro, said in an email. «If consumer confidence continues to sag, it stands to reason that consumer spending, which accounts for roughly two-thirds of U.S. GDP, could also come under pressure.»Consumer optimism has «largely vanished»
«Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations», Stephanie Guichard, senior economist at The Conference Board, said in a statement.
«Like the Michigan survey results, this index says that consumers are rattled», added Carl Weinburg, chief economist at High Frequency Economics, referring to the University of Michigan’s Survey of Consumers, which earlier this month showed that consumer sentiment had fallen to a two-year low.
