The Conference Board’s measure for future expectations has fallen to its lowest level in 12 years, with a decline of 9.6 points to 65.2. This drop is the fourth consecutive monthly contraction.
Consumer confidence has also dimmed further, with the board’s monthly confidence index of current conditions slipping to 92.9, a 7.2-point decline. Economists had expected a reading of 93.5.
The measure for future expectations is based on respondents’ outlook for income, business, and job prospects. A key factor in this drop was consumers’ optimism about future income, which largely vanished. This suggests that worries about the economy and labor market are spreading to consumers’ personal assessments.
The survey comes amid concerns over President Donald Trump’s plans for tariffs on US imports, coinciding with a volatile stock market and other surveys showing waning sentiment. The fall in confidence was driven by a decline in those 55 or older but was spread across income groups.
In addition to the general pessimism, the outlook for the stock market has slid sharply. Only 37.4% of respondents expect higher equity prices in the next year, marking a 10 percentage point drop from February and the first time the view turned negative since late 2023. The labor market also saw weakening sentiment, with those expecting more jobs to be available falling to 16.7%, while those expecting fewer jobs rose to 28.5%.
Source: https://www.cnbc.com/2025/03/25/consumer-confidence-in-where-the-economy-is-headed-hits-12-year-low.html