Consumer Confidence Hits Low Since January 2021

According to the latest report by the Conference Board, US consumer confidence has taken a significant hit in March, dropping to its lowest level since January 2021. The confidence index fell sharply from 98.3 in February to 92.9 in March, missing expectations by a wide margin.

Present Situation and Future Expectations Deteriorate

The indicator reflecting consumers' assessment of the present situation decreased by 2 points to 134.5. More alarmingly, the expectations index witnessed a steep decline from 72.9 in February to 65.2 in March, marking the lowest point in 12 years. Inflation expectations for the next 12 months also rose from 5.8% to 6.2%.

Expert Insights on the Decline

Stephanie Guichard, Senior Economist at the Conference Board, noted, "Consumers’ optimism about future income, which had remained robust in recent months, has largely disappeared. This suggests growing concerns about the economy and labor market are now affecting personal financial outlooks."