US Consumer Confidence Slumps to an Almost Five-Year Low
US consumer confidence fell in April to an almost five-year low on growing pessimism about prospects for the economy and labor market due to tariffs.
The Conference Board’s gauge of confidence decreased nearly 8 points to 86, the weakest since May 2020, data released Tuesday showed. It marked the fifth straight monthly decline, the longest such stretch since 2008. The median estimate in a Bloomberg survey of economists called for a reading of 88.
A measure of consumer expectations for the next six months plunged to the lowest level since 2011, while a gauge of present conditions also fell.
The Conference Board’s data are consistent with the University of Michigan’s survey and illustrate growing consumer apprehension that higher duties on foreign goods will damage the economy and job market, while pushing up prices.
Corporate executives have signaled concerns that the recent plunge in confidence will filter through into weaker demand, while warning that consumers can expect to see higher prices because of tariffs.
The measure of inflation expectations itself rose to the highest since November 2022, according to The Conference Board’s report. The share expecting higher interest rates in the year ahead also rose.
The share of consumers saying jobs were currently hard to get increased to 16.6%, the highest since October. A smaller share said jobs were plentiful. The difference between these two — a metric closely followed by economists to gauge the job market — decreased to the lowest since September.
“The three expectation components — business conditions, employment prospects, and future income — all deteriorated sharply, reflecting pervasive pessimism about the future,” Stephanie Guichard, senior economist at The Conference Board, said in a statement.
While sentiment figures, along with other so-called “soft data” that include surveys of businesses, have been downbeat, the weakness has yet to translate into a notable pullback in consumer spending. Retail sales in March posted the biggest gain in more than two years, inflation broadly cooled, hiring picked up.
Source : Bloomberg
