Consumer confidence in the United States fell to its lowest level in nearly five years in March, amid rising concerns about tariffs that negatively impacted economic expectations.

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 since May 2020. Economists had expected the index to decline to 87.7 points.

The Present Situation Index, which is based on consumers' assessment of current conditions in the labor market and business activity, fell 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, declined by 12.5 points to 54.4, the lowest level since October 2011, and well below the threshold of 80 points, which typically indicates the approach of an economic recession.