Consumer confidence in the US plummeted to its lowest level since January 2021, with households increasingly worried about a potential recession and rising inflation driven by tariffs. The Conference Board’s index fell 7.2 points to 92.9 in March, marking the fourth consecutive monthly decline.
Economists attribute the drop to uncertainty surrounding President Trump’s trade policies, including impending tariffs on imported automobiles. The index measuring future expectations hit a 12-year low, further signaling concerns of an economic downturn.
Despite the pessimism, consumer spending remains stable for now, with many planning to purchase appliances and vehicles before tariff-related price hikes take effect. Meanwhile, inflation expectations surged to 5.1%, raising concerns for the Federal Reserve, which has held interest rates steady but expects cuts later this year.
The labor market showed resilience, with the jobless rate projected to remain at 4.1% in March. However, economists warn that continued uncertainty could dampen economic growth in the months ahead.
