U.S. consumer confidence tumbles in April

U.S. consumer confidence dropped sharply in March, hitting its lowest level in nearly five years as mounting tariff concerns clouded the economic outlook.

According to data released Tuesday by the Conference Board, the consumer confidence index fell by 7.9 points to 86.0—its weakest reading since May 2020. Economists surveyed by Reuters had expected a smaller decline to 87.5.

The Present Situation Index, which reflects consumer views on current business and labor conditions, dipped 0.9 point to 133.5. Meanwhile, the Expectations Index—which gauges short-term sentiment on income, business, and labor market conditions—plunged 12.5 points to 54.4, the lowest since October 2011 and well below the recession-warning threshold of 80.

“Consumer confidence declined for a fifth straight month in April, falling to levels not seen since the early days of the COVID-19 pandemic,” said Stephanie Guichard, Senior Economist for Global Indicators at The Conference Board.

Government data expected Wednesday is likely to show a sharp slowdown in first-quarter economic growth, driven by a surge in imports as businesses rushed to stockpile goods ahead of higher tariffs.

Consumer spending also appears to have lost momentum, pressured by persistent inflation and growing anxiety over the economic impact of tariffs—leading some households to reduce spending to protect savings.

According to a Reuters survey, gross domestic product likely grew at an annualized rate of just 0.3% in the January–March quarter, marking the slowest pace since the second quarter of 2022.

Risks remain skewed to the downside, with the Atlanta Federal Reserve projecting a 0.4% decline in GDP after accounting for gold trade adjustments. This follows a 2.4% expansion in the previous quarter.