Consumer confidence fell to its lowest level in 13 years, according to the Conference Board’s most recent survey released Tuesday. Survey respondents were most concerned about President Donald Trump’s tariff policies and how they would impact prices.
Consumer confidence fell for the fifth straight month on the heels of President Donald Trump’s sweeping tariff policies, driving up prices and spooking Americans.
The Conference Board’s most recent survey for its Consumer Confidence Index, published Tuesday, shows confidence dropped nearly eight points in April to 86. Consumers’ expectations for the future are now at a 13-year low, according to the Conference Board.
Stephanie Guichard, senior economist for global indicators at the Conference Board, said three expectation components—business conditions, employment prospects, and future income—all dropped sharply. The share of consumers expecting fewer jobs in the next six months was 32.1%, nearly as high as during the Great Recession.
“In addition, expectations about future income prospects turned clearly negative for the first time in five years, suggesting that concerns about the economy have now spread to consumers worrying about their own personal situations,” she said in a statement.
The Conference Board’s Consumer Confidence Index is based on a survey of all age groups and most income groups, and the sharpest decline in confidence came from consumers between 35 and 55 years old and households earning at least $125,000 per year. A confidence drop was seen among all political affiliations, according to the Conference Board.
Meanwhile, the University of Michigan’s Surveys of Consumers for April also showed consumer sentiment fell for the fourth straight month, dropping 8% from March. Expectations fell 32% since January, which is the steepest three-month percentage decline since the 1990 recession, according to the University of Michigan.
“Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead,” the report read. “Labor market expectations remained bleak.”
At the top of mind for consumers who responded to the Conference Board’s survey were concerns about tariffs. They mentioned worries about how tariffs will increase prices and have a negative impact on the economy. Consumers also remained distressed by inflation and high prices, specifically referencing groceries and gas. Waning consumer confidence has tanked Trump’s approval rating, which hit the lowest level among his two terms earlier this month.
Story Continues
