Weak economic growth and a decline in consumer spending. Consumer confidence in the United States fell to its lowest level in nearly five years in March, amid rising concerns about tariffs that have negatively impacted economic forecasts.
The Conference Board reported on Tuesday that the Consumer Confidence Index dropped by 7.9 points to 86.0 this month, the lowest level recorded by the index since May 2020. Economists had expected the index to decline to 87.7 points.
The Current Situation Index, which is based on consumers' assessment of current conditions in the labor market and business activity, decreased by 0.9 points to 133.5. Meanwhile, the Expectations Index, which measures consumers' short-term outlook for income, business activity, and the labor market, fell by 12.5 points to 54.4, the lowest level since October 2011, and well below the threshold of 80 points, which typically indicates a recession is imminent.
The government is expected to announce on Wednesday that economic growth has sharply slowed in the first quarter of the year, amid a significant increase in imports as companies rushed to bring in goods before facing higher tariffs.
Consumer spending is also likely to have experienced a noticeable slowdown.