Souvenirs for sale in the Penn Quarter neighborhood of Washington, D.C. Photo: Al Drago/Bloomberg via Getty Images
Americans felt worse about the economy in March, according to a long-running survey released on Tuesday that also showed optimism about the outlook at a 12-year low — the latest sign of tariff threats rattling consumers.
Why it matters: President Trump now faces the same economic discontent that plagued the Biden administration.
- Consumers’ pessimism is raising fears about the economy’s health, even as official government indicators suggest healthy conditions.
By the numbers: The Conference Board’s consumer confidence index fell by more than 7 points in March to 92.9.
- What they’re saying: “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022,” Stephanie Guichard, a senior economist at The Conference Board, said in a release.
Zoom in: A sub-index that measures confidence in the short-term outlook for income, business and employment conditions dropped almost 10 points to the lowest level in 12 years.
- Just one sub-index improved, though only slightly: Consumers’ assessment of the current labor market ticked up.
The big picture: The Conference Board said consumers’ write-in responses indicated that Trump policies — supportive or not — far outweighed other factors affecting Americans’ view of the economy.
- They also note that consumers are worried most about inflation.
- Average inflation expectations for the year ahead rose again, to 6.2% from 5.8% the prior month, “as consumers remained concerned about high prices for key household staples like eggs and the impact of tariffs,” the Conference Board said.
The bottom line: CEOs and consumers alike feel gloomier about the economy now — raising the risk that those jitters translate into less hiring, investment or purchases.
