US Consumer Confidence Hits 12-Year Low

U.S. consumer confidence has fallen for the fourth consecutive month, reaching a 12-year low in March, as reported by The Conference Board. The index dropped to 92.9, below analysts' expectations. This decline is primarily driven by rising anxiety among Americans over tariffs, particularly those announced by Donald Trump, and persistent inflation that remains above the United States — Federal Reserve's 2% target. Consumers' short-term expectations for income, business, and the job market have also plummeted, with a reading below 80 potentially signaling a recession. Major retailers, including Walmart, Oracle Corporation, Macy s, Inc., Best Buy, Abercrombie & Fitch, and Dollar General, have expressed caution about their 2025 outlooks, with some slashing profit forecasts due to economic uncertainty and the impact of tariffs on countries like Mexico, Canada, and China. While the Trump administration downplays the correlation between confidence data and actual spending, economists and retailers note a shift in consumer behavior, with retail sales dropping sharply in January. The report suggests a weakening in discretionary consumer spending in the near-term, with potential for a rebound if policy shifts towards tax cuts.