Americans’ economic expectations drop to a 12-year low amid rising prices and uncertainty over Trump’s policies.
In Short
Americans’ economic expectations have plummeted to a 12-year low due to uncertainty over President Trump’s policies and rising prices. Consumer confidence has fallen significantly, with many now pessimistic about their financial future and the stock market.
Americans’ economic expectations are at a 12-year low.
Uncertainty over President Trump’s policies and rising prices are impacting consumer sentiment.
The Conference Board’s latest consumer confidence index is at 92.9 for March, down from 100.1 in February.
This is the lowest level in over four years.
The expectations index, indicating short-term outlook for income, business, and labour market conditions, declined to 65.2 from 72.9.
It remains beneath the 80 mark, often seen as a recession signal, for the second consecutive month.
Financial situation
Consumers’ expectations regarding their financial situation have fallen to their lowest in more than two years.
Yelena Shulyatyeva, a senior economist at the Conference Board, indicated that uncertainty about the economic outlook is affecting consumers’ perceptions of their future financial well-being.
Among the five components contributing to consumer confidence, only the assessment of current labour market conditions improved in March.
Consumers’ future expectations are particularly negative, with inflation expectations rising to 6.2% from 5.8%.
Additionally, for the first time since 2023, consumer sentiment regarding the stock market has turned negative, with only 37.4% expecting stock prices to rise in the coming year.
