San Diego, California – In March, consumer confidence took a significant hit, plummeting to its lowest levels in over a decade, according to the latest report from The Conference Board. The index measuring current conditions fell to 92.9, marking a 7.2-point decrease and the fourth consecutive monthly decline. Economists had anticipated a reading of 93.5, highlighting the unexpected dip in consumer sentiment.
The outlook for future expectations was even more grim, with the index dropping 9.6 points to 65.2, the lowest level in 12 years. This decrease is well below the 80 level that typically signals an impending recession. The index evaluates respondents’ perspectives on income, business, and job prospects, providing insight into their overall economic outlook.
Stephanie Guichard, a senior economist at The Conference Board, noted that consumers’ optimism about future income has significantly decreased. This shift indicates growing concerns about the economy and labor market, which are beginning to affect individuals’ personal assessments of their financial situations. The survey results align with recent uncertainties over President Donald Trump’s proposed tariffs on U.S. imports, which have contributed to a volatile stock market and declining sentiment across various consumer surveys.
The decline in confidence was most pronounced among those aged 55 and older, although it was evident across different income groups. Notably, the outlook for the stock market experienced a sharp decline, with only 37.4% of respondents expecting higher equity prices in the upcoming year. This marked a 10 percentage point decrease from the previous month and the first negative sentiment since late 2023.
Furthermore, the perception of the labor market weakened, as fewer respondents anticipated more job opportunities (16.7%) while more believed that job availability would decline (28.5%). These figures represent a drop from the previous month, underscoring the growing apprehensions surrounding economic stability. This shift in consumer sentiment may have broader implications for overall economic growth and market performance in the coming months.