US consumer confidence plummets in fifth straight monthly decline
A shopping cart with groceries at a Target store in New York City on April 10, 2025. (AFP Photo)
Consumer confidence in the United States dropped sharply in April, reaching its lowest point since the early months of the COVID-19 pandemic nearly four years ago, according to data released Tuesday by The Conference Board.
The Consumer Confidence Index tumbled 7.9 points to 86 in April, marking the fifth consecutive monthly decline. The March figure was revised upward to 93.9, though April’s reading still fell below market expectations of 87.7.
Fifth consecutive monthly decline marks worrying trend
“Consumer confidence declined for a fifth consecutive month in April, falling to levels not seen since the onset of the COVID pandemic,” said Stephanie Guichard, senior economist at The Conference Board.
The Present Situation Index, which measures consumers’ assessment of current business and labor market conditions, showed a modest decline of 0.9 points to 133.5.
However, the more forward-looking Expectations Index plummeted 12.5 points to 54.4, its lowest level since October 2011. This figure sits well below the threshold of 80 – a level that historically signals an impending recession within the next year.
Deteriorating outlook on jobs, income and business conditions
Guichard noted that “business conditions, employment prospects and future income expectations have deteriorated sharply,” adding that “concerns about the economy have spread to consumers’ concerns about their situations.”
The report revealed growing pessimism about financial markets as well, with nearly half of consumers anticipating stock market declines.
Stock market pessimism reaches 13-year high
“High financial market volatility in April pushed consumers’ views about the stock market deeper into negative territory, with 48.5% expecting stock prices to decline over the next 12 months (the highest share since October 2011),” Guichard said.
Adding to economic concerns, the survey found that 12-month average inflation expectations reached 7%, the highest level recorded since November 2022.
The continued erosion of consumer confidence comes as policymakers and economists closely monitor signals about the health of the U.S. economy amid persistent inflation pressures and uncertain growth prospects.
