US consumer confidence has plummeted to its lowest level since January 2021, driven by escalating fears over inflation and trade policies. According to the Conference Board, the consumer confidence index fell by 7.2 points to 92.9 in March, marking the fourth consecutive monthly decline. This downturn reflects growing concerns about future income, employment prospects, and economic stability.
Tariffs, particularly those imposed by the Trump administration, have exacerbated worries about rising prices and potential recession. The expectations index hit a 12-year low, indicating deep pessimism among consumers, especially older and higher-income groups. Retail giants like Walmart and Target have expressed caution due to economic uncertainties affecting future sales and profits.
The decline in consumer confidence is significant as it could lead to reduced spending, impacting overall economic activity. Economists warn that ongoing trade tensions and inflation fears might further erode fiscal strength and consumer sentiment. As businesses brace for potential repercussions, the outlook remains uncertain, underscoring the need for careful economic monitoring in the coming months.
