Sharp Decline in Consumer Confidence

The United States has witnessed a significant drop in consumer confidence this April, with The Conference Board's Consumer Confidence Index falling by 7.9 points to 86.0. This marks the lowest level since the onset of the COVID-19 pandemic.

Economic Expectations Hit 13-Year Low

According to the data released, the Expectations Index has plummeted to 54.4, signaling a potential recession. This is the lowest the index has been in over a decade.

Underlying Causes of Pessimism

Senior economist Stephanie Guichard highlighted that the decline is fueled by increasing pessimism regarding future economic conditions. Concerns over job availability, income stability, and business prospects have all worsened. "The proportion of consumers anticipating fewer job opportunities is nearly as high as it was in April 2009," Guichard observed.

Additional Factors Contributing to Anxiety

The rise in inflation expectations and stock market volatility, along with growing worries about tariffs driving up prices, have further exacerbated consumer anxiety.