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3w ago

U.S. Consumer Confidence Hits 12-Year Low as Spending Slows

Economic uncertainty, inflation, and impending tariffs drive reduced spending, increased savings, and downgraded corporate earnings forecasts across sectors.

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Overview

  • The Conference Board’s expectations index fell to 65.2 in March, its lowest level in 12 years, signaling heightened recession concerns.
  • Consumer spending rose just 0.1% in February, while the personal savings rate climbed to 4.6%, reflecting cautious financial behavior.
  • Major companies, including FedEx, Delta Air Lines, and Walmart, have lowered earnings projections due to reduced demand and economic headwinds.
  • Upcoming tariffs on imported goods are fueling inflation fears and causing even high-income households to cut back on discretionary spending.
  • Economists warn that slowing consumer activity and declining confidence could lead to broader economic contraction in early 2025.