Associated Press, by Matt Ott
WASHINGTON (AP) — U.S. consumer confidence has fallen for the fourth straight month as American anxiety about their financial futures fell to 12-year lows amid growing concerns about tariffs and inflation.
The conference committee reported Tuesday that its consumer confidence index fell to 92.9, down 7.2 points in March. Analysts were hoping to refuse a 94.5 read, according to a FactSet survey.
A meeting committee report on Tuesday said the measure of Americans’ short-term expectations for income, business and job markets fell 9.6 points to 65.2.
The conference committee is the lowest measurement in 12 years, well below the 80 threshold. However, the proportion of consumers who expected a recession the following year had remained stable at nine months high, the board reported.
“Consumer optimism about future income, which had been very strong in the past few months, has largely disappeared, suggesting that concerns about the economy and labor market have begun to spread to consumer evaluations of personal circumstances.”
A board survey showed a decline in both home and car purchase plans. However, given the anxiety of respondents given their anxiety about their future, it was surprisingly surprising, and their intention to purchase expensive items such as electrical appliances increased. The board said it would reflect a desire to buy before Trump’s tariffs begin, leading to a rise in prices.
Inflation has recepped from its highs during the post-pandemic rebound, but has surpassed the Federal Reserve 2% target. Combined with the tariffs on many imports announced by President Donald Trump, these still-announced prices make Americans feel sour about spending as concerns about economy mounts.
Consumers appeared to be increasingly confident at the end of 2024, spending their generously during the holiday season. However, in January, US retail sales fell sharply, and cold weather took responsibility.
Earlier this month, the government reported that Americans had moderately strengthened their spending in February after a sharp pullback the previous month.
The board reported Tuesday that consumer views on current terms fell 3.6 points to 134.5.
The Consumer Trust Index measures both an assessment of the current economic situation of Americans over the next six months and its outlook.
Consumer spending accounts for about two-thirds of US economic activity, and is closely monitored by economists for indications about how American consumers feel.
Original issue: March 25th, 2025 10:37am EDT
