Consumer confidence in the United States has plummeted to a 12-year low, with Americans feeling increasingly anxious about their financial futures. The latest report from The Conference Board shows that the consumer confidence index fell to 92.9 in March, marking the fourth straight monthly decline. This decline is attributed to rising concerns over tariffs and inflation.
The measure of short-term expectations for income, business, and the job market also hit a 12-year low at 65.2, well below the threshold of 80 that could signal a potential recession. Economists believe that President Donald Trump’s tariffs are contributing to the uncertainty and anxiety felt by consumers. Trump’s back-and-forth approach to imposing tariffs has been criticized for creating confusion and making it difficult for businesses to plan ahead.
Despite the Trump administration downplaying the impact of consumer sentiment on the actual economy, major retailers like Walmart are feeling the effects. Walmart recently slashed its profit forecast for the year, attributing it in part to tariffs on Mexico, Canada, and China. Other retailers like Target, Macy’s, Best Buy, and Dollar General have also expressed caution about their expectations for the year.
The survey from The Conference Board also revealed a decline in purchasing plans for homes and cars, while intentions to buy big-ticket items like appliances actually increased, possibly due to concerns about impending price increases. Inflation remains a concern, as prices have not fully retreated from their post-pandemic highs. Overall, the decline in consumer confidence reflects a broader sense of economic uncertainty and anxiety among Americans.
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