A recent survey from the Conference Board indicates that Americans’ confidence in their income and business prospects has dropped to its lowest level in over 12 years, Fortune reports.
This marks the fourth consecutive month of declining consumer confidence, with many Americans expressing pessimism about the future.
The Conference Board’s latest Consumer Confidence Survey, released on Tuesday, revealed that the Expectations Index—which measures consumer expectations for income, business, and labor market conditions—fell to 65.2. This figure is notably well below the 80 threshold that typically signals the potential for a recession. According to Stephanie Guichard, senior economist at the Conference Board, the decline in consumer confidence reflects increasing concerns about both the broader economy and individual financial situations.
“Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low,” Guichard said.
She also pointed out that optimism about future income, which had remained relatively stable in previous months, largely diminished in March. This shift suggests that concerns about the economy and the labor market are now influencing consumers’ perceptions of their own financial stability.
Compared to February, fewer Americans in March expected their incomes to rise, with a noticeable increase in the number of individuals who anticipated a decrease in their earnings. Additionally, the outlook for the labor market worsened, as more people expressed concern about a decline in job availability. The pessimism also extended to business conditions, with more consumers expecting a downturn in economic conditions.
The decline in consumer confidence was particularly evident among individuals over the age of 55, followed by those between 35 and 55. These groups reported the most significant drops in their outlooks for the future.
The stock market also reflected this pessimism, with expectations turning negative for the first time since 2023. The markets experienced a major selloff earlier this month due to uncertainty over tariffs, which led to a significant loss of gains in the S&P 500. Only 37.4% of consumers in March expected stock prices to rise in the year ahead, a sharp decline from 47.2% in February and a 20 percentage point drop from November 2024 levels.
Inflation has also become a major concern for consumers, with many reporting worries about rising prices for essential household items, such as eggs. The impact of tariffs has further contributed to these concerns, with many Americans cutting back on spending due to fears about economic instability. On Wednesday, Chicago Fed President Austan Goolsbee cautioned that inflation could become a self-fulfilling prophecy if businesses start incorporating consumers’ fears into their pricing strategies.
The Conference Board will release its next consumer confidence report on April 29.
