US consumer confidence plunges to lowest in 5 years on tariff worries
Americans’ confidence in the economy slumped for the fifth straight month to the lowest level since the onset of COIVD-19 as worries about the impact of tariffs take a heavy toll on consumer expectations for future growth
Americans' confidence in the economy slumped for the fifth straight month to the lowest level since the onset of the COIVD-19 pandemic as anxiety over the impact of tariffs take a heavy toll on consumer expectations for future growth.
The Conference Board said Tuesday that its consumer confidence index fell 7.9 points in April to 86, its lowest reading since May 2020.
The figures reflect a rapidly souring mood among consumers, most of whom expect prices to rise because of the widespread tariffs imposed by President Donald Trump. About half of Americans are also worried about the potential for a recession, according to a survey by The Associated Press-NORC Center.
How this gloomy mood translates into spending, hiring, and growth will become clearer in the coming days and weeks. On Wednesday, the government will report on U.S. economic growth during the first three months of the year, and economists believe it will show a sharp slowdown as consumers pulled back on spending after a strong winter holiday shopping season.
And on Friday the Labor Department will release its latest report on hiring and the unemployment rate. Overall, economists expect it should still show steady job gains, though some forecast it could show sharply reduced hiring.