By MATT OTT, Associated Press
WASHINGTON (AP) — U.S. consumer confidence dipped for the fourth consecutive month, reaching a 12-year low due to mounting concerns over tariffs and inflation, according to the Conference Board’s report released on Tuesday. The consumer confidence index fell to 92.9 in March, a 7.2 point drop from the previous month, below analysts’ expectations of 94.5.
The report highlighted a sharp decline in Americans’ short-term expectations for income, business, and job market, which plummeted by 9.6 points to 65.2, marking the lowest reading in over a decade. Despite the bleak outlook, the proportion of consumers anticipating a recession in the next year remained steady at a nine-month high.
Stephanie Guichard, senior economist at The Conference Board, noted that consumers’ optimism about future income had significantly waned, indicating a broader concern over the economy and labor market affecting personal assessments.
While intentions to purchase homes and cars decreased, there was an unexpected increase in plans to buy big-ticket items like appliances. This shift could be attributed to a desire to make purchases before potential price increases resulting from Trump’s tariffs.
Although inflation has moderated from post-pandemic highs, it remains above the Federal Reserve’s target of 2%. Coupled with the announced tariffs on imported goods, these factors have contributed to consumer apprehension about spending.
Consumer spending, a key driver of the U.S. economy, saw a decline in retail sales in January following a strong holiday season. The latest data from February indicated a modest uptick in spending after a previous contraction.
The report also highlighted a decrease in consumers’ assessment of current economic conditions by 3.6 points to 134.5. The consumer confidence index, which measures both current conditions and future outlook, is closely monitored by economists as a barometer of consumer sentiment.
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