The following is a report from The Associated Press.
U.S. consumer confidence continued its sharp 2025 decline as Americans’ views about their financial futures slumped to a 12-year low, driven by rising anxiety over tariffs and inflation.
The Conference Board reported Tuesday that its consumer confidence index fell 7.2 points in March to 92.9, the fourth straight monthly decline and its lowest reading since January of 2021. The reading was short of analysts expectations for a reading of 94.5, according to a survey by FactSet.
The business group found that the measure of Americans’ short-term expectations for income, business and the job market fell 9.6 points to 65.2.
That’s the lowest reading in 12 years and well below the threshold of 80, which the Conference Board says can signal a potential recession in the near future. The proportion of U.S. consumers anticipating a recession remains at a nine-month high, the board reported.
“Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” said Stephanie Guichard, senior economist at The Conference Board.
The administration of President Donald Trump has largely played down the souring mood among Americans, saying it doesn’t necessarily reflect what’s happening in the actual economy. This argument is similar to what officials in former President Biden’s administration said as high inflation suppressed consumer confidence without undermining growth.
“I just don’t think that there’s been a very strong correlation between the confidence data and actual consumer spending in recent years,” Stephen Miran, the chairman of the Council of Economic Advisers, told CNBC on Tuesday. “You go out in the street, people are going about their lives, you know, they’re getting their paychecks, they’re spending their paychecks, the economy is marching on ahead.”
Yet some of the nation’s biggest retailers, who have noted a shift in consumer behavior, are telling a different story.
Walmart has thrived with Americans trying to offset higher prices by seeking bargains. Late last month, however, the nation’s largest retailer slashed its profit forecast for this year. Its sales outlook was also conservative and the company does not include the potential impact of tariffs in its expectations for 2025.
Click here to read the full report by Matt Ott at The Associated Press.
