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57m ago

U.S. Consumer Confidence Hits Lowest Level Since May 2020

Concerns over tariffs, inflation, and job prospects drive April's sharp decline, while current economic conditions remain relatively stable.

A woman shop for items at a Dollar Tree store on April 28 in Alhambra, California.
Workers work on a production line at a factory in Suqian, Jiangsu Province, China April 9, 2025. China Daily via REUTERS/File Photo
People queue for food in the financial district of Canary Wharf as it was announced that British consumer price inflation hit an annual rate of 9.0% in April in London, Britain, May 18, 2022. REUTERS/Kevin Coombs/File Photo

Overview

  • The Conference Board’s Consumer Confidence Index fell 7.9 points in April to 86.0, marking the lowest level since May 2020 and the fifth consecutive monthly decline.
  • The Expectations Index dropped 12.5 points to 54.4, its lowest reading since October 2011, signaling deep pessimism about future business conditions, employment, and income prospects.
  • Mentions of tariffs in consumer survey responses reached an all-time high, reflecting widespread anxiety about their economic impact and potential to drive inflation higher.
  • Year-ahead inflation expectations rose to 7%, the highest since November 2022, while 48.5% of consumers expect stock prices to decline in the next 12 months, the most since October 2011.
  • Despite the downturn in confidence, the Present Situation Index remained relatively strong at 133.5, with indicators such as retail sales and hiring showing continued economic resilience.