As negative results from Joe Biden’s presidency are dragging on, Americans are losing faith in the economy’s future, as consumer confidence plunges to its lowest in more than a decade.
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The Conference Board reported a concerning decline in March, with expectations sharply dropping, signaling growing fears of an economic downturn.
Consumer confidence in the U.S. economy has hit a concerning 12-year low.
The Conference Board’s consumer confidence index fell to 92.9 in March, the fourth month of consecutive declines, stirring debates about economic stability.
According to the latest report, the expectations index dropped to 65.2, staying below the recession indicator threshold of 80 for the second month in a row.
This low confidence in future conditions marks the most significant decrease in expectations since the onset of the COVID-19 pandemic.
Economists warn that heightened inflation expectations have contributed to these sentiments, rising from 5.8% to 6.2% in March.
As consumers become more pessimistic about their financial situations, fears grow over a potential recession and its ripple effects on American families.
Overall, consumer optimism about the economy and labor market is deteriorating.
“Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” said Stephanie Guichard, senior economist, global indicators at The Conference Board, cited by CNBC.
Alongside these bleak insights, more consumers report lower income expectations, rising to 15.5% in March.
Major retailers like Walmart and Target are adjusting profit forecasts as they notice shifts in consumer behavior, anticipating a more cautious spending approach amidst economic uncertainty.
Despite the gloomy data, the Trump administration has downplayed the decline, pointing to actual economic indicators like low layoffs and stable retail sales that suggest a different reality.
This perspective has sparked debate, especially given the stark contrast in consumer sentiment and economic policy.
Inflation also remains stubbornly high, exceeding the Federal Reserve’s 2% target, amplifying economic anxiety.
As consumer spending forms a major facet of U.S. economic activity, analysts watch closely to understand how these sentiment shifts could shape the economic landscape.
Consumer confidence in where the economy is headed hits 12-year low https://t.co/DRnRy18nZd
— CNBC (@CNBC) March 25, 2025
Stephen Miran, chair of the White House’s Council of Economic Advisers, remarked on the political influences shaping the survey responses, minimizing the significance of the data.
“I just don’t think that there’s been a very strong correlation between the confidence data and actual consumer spending in recent years,” Miran stated.
As consumer doubt persists, political affiliations predictably sway economic predictions.
While Democrats express record-low expectations, Republicans maintain a relatively favorable economic view, showing how deeply these concerns are interwoven with political identities.
