US consumer confidence has plummeted to its lowest level since January 2021, according to the Conference Board’s latest survey. The decline is attributed to growing financial concerns, fueled by trade policies and government cutbacks under the Trump administration.
The short-term outlook for income, business, and labor market conditions has fallen to a 12-year low, indicating consumer anxiety about a potential economic downturn in the coming year. Economists warn that Mr. Trump’s plans for sweeping tariffs could reignite inflation and fuel further stock-market sell-offs.
Households are bracing for higher inflation over the next year, with 12-month inflation expectations rising to 6.2 percent from an outlook of 5.8 percent in February. Consumers are “spooked” by trade wars, government cuts, and a recent stock market sell-off, which is expected to lead to reduced discretionary spending on vacations and big purchases.
Company executives, including Delta Air Lines and Burlington, have also warned of a potential pullback in consumer spending due to tariffs. This decline in consumer confidence adds to growing evidence that uncertainty about tariff policies is making consumers less confident about the economic outlook and more worried about inflation.
Source: https://www.nytimes.com/2025/03/25/business/consumer-confidence-trump.html