US Consumer Confidence Hits Lowest Since January 2021

According to the latest report by the Conference Board, consumer confidence in the United States experienced a significant drop in March, reaching its lowest level since January 2021. The confidence index decreased from 98.3 in February to 92.9 in March, falling short of expectations.

Key Indicators Show Widespread Concerns

The indicator reflecting consumers' assessment of the present situation saw a 2-point decline to 134.5. More alarmingly, the expectations index took a steep dive from 72.9 in February to 65.2 in March, marking the lowest point in 12 years. Additionally, inflation expectations for the next 12 months rose from 5.8% to 6.2%.

Expert Insight on Consumer Sentiment

"Consumers' optimism about future income, which had remained resilient in recent months, has significantly diminished. This shift indicates growing concerns about the economy and labor market are now affecting personal financial outlooks," explained Stephanie Guichard, Senior Economist at the Conference Board.