US Consumer Confidence Hits Low Since January 2021

According to the latest report by the Conference Board, consumer confidence in the United States 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 Diverge

The indicator reflecting consumers' assessment of the present situation decreased slightly by 2 points to 134.5. In contrast, the expectations index saw a dramatic fall 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

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