Consumer confidence has declined for a fifth straight month, sliding to its lowest level since early in the COVID-19 pandemic.
The Conference Board’s Consumer Confidence Index fell to 86 in April, down from 92.9 in March and below economists’ consensus of 88.
Of particular concern is the Expectations Index, which plunged to 54.4 — its weakest reading since 2011 and well under the 80 level that analysts often view as a warning sign of a potential recession.
Inflation expectations have increased to 7%, and the labor outlook has weakened notably: 32.1% of consumers now expect fewer job opportunities in the months ahead.
Survey respondents linked much of their anxiety to recent trade policy shifts. In particular, announced tariffs appear to have raised worries about household finances and employment prospects, contributing to the drop in confidence.
Economists say the combination of higher inflation expectations and a deteriorating job outlook can dampen consumer spending, which in turn may slow economic growth. Lower confidence can make households more cautious about big-ticket purchases and longer-term commitments, reducing demand in sectors such as housing, autos, and durable goods.
Policy makers and business leaders will be monitoring these trends closely. If expectations continue to fall, stronger policy responses or clearer communication could be needed to restore confidence and stabilize markets.