A recent report from the Conference Board shows a decline in consumer confidence in March, with concerns rising over income, business, and employment conditions for the next six months.
Customer sentiment dropped to a 12-year low due to growing concerns over tariffs.
Additionally, the Conference Board’s Expectations Index fell by 9.6 points to 65.2, which signals a recession, according to the statement.
Stephanie Guichard, senior economist for global indicators at the Conference Board, said: “Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low.
“Consumers’ optimism about future income, which had held up quite strongly in the past few months, largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.”
Additionally, the consumers reported rising concerns over inflation, with the expectation for inflation rising to 6.2% from 5.8% in February.
The study also found that consumers had a growingly pessimistic outlook, anticipating greater financial pressures in the coming month. Among respondents, 27.3% expected business conditions to deteriorate, while 15.5% predicted a decline in their income.
Consumer confidence taking a downturn was also reported by the University of Michigan in March, with consumer sentiment dipping by 11%.
The report also revealed that plans for purchasing homes and cars decreased.
However, the intentions to buy high-priced retail items such as appliances and electronics increased, which may be driven by plans to purchase before a potential inflation.
This aligns with a recent report from CreditCards.com, which showed that Americans are buying excessively due to the fear of economic instability and potential tariff increases.
Click here to sign up to Retail Gazette‘s free daily email newsletter
