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US Consumer Confidence Falls to 4-Year Low
As households fear a future economic recession and rising inflation due to tariffs, a survey by the Conference Board showed that US consumer confidence fell to its lowest level in more than four years in March.
The Conference Board's Consumer Confidence Index, released Tuesday, fell 7.2 points to 92.9 this month, its lowest level since January 2021. Economists polled by Reuters had forecast a drop to 94.0.
This fourth consecutive monthly decline in confidence mirrors a similar deterioration in the University of Michigan's Consumer Confidence Index, which also erased all gains made following Trump's November election victory.
The Conference Board said written responses to the survey questions showed "increasing concerns about the impact of trade policies, particularly tariffs," adding that "there are also more signs than usual of economic and political uncertainty."
The survey's measure of future expectations hit a 12-year low, exceeding a level associated with an economic slowdown.
Economists have criticized President Donald Trump's intermittent tariff imposition, arguing that it creates confusion and uncertainty, making it difficult for businesses to plan for the future and ultimately hurting the economy.
Trump indicated on Monday that not all of the tariffs he threatened would be imposed on April 2, and that some countries might receive exemptions. At the same time, he said that tariffs on imported cars would be imposed soon.
"Consumers are worried. The decline in consumer confidence since the November election can no longer be dismissed as a coincidence; the chaos in Washington has something to do with it," said Carl Weinberg, chief economist at High Frequency Economics.
The Conference Board's expectations index, which is based on consumers' short-term expectations for income, business, and labor market conditions, also fell 9.6 points to 65.2—its lowest level since March 2013 and well below the 80 threshold that typically signals an impending recession.
