Consumer confidence is a crucial measure of economic sentiment among households, reflecting their optimism or pessimism about the current and future state of the economy. One of the most widely recognized indicators of consumer sentiment is The Conference Board's Consumer Confidence Index®, which provides valuable insights into spending patterns, economic trends, and potential risks.


Recent Trends in Consumer Confidence


In March, the Consumer Confidence Index® fell by 7.2 points to 92.9, marking the second straight month of a 7 point decline. This fourth consecutive monthly drop pushed confidence below the relatively narrow range that prevailed since 2022.

Inflation remains a top concern for consumers, while worries about the impact of trade policies and tariffs in particular are on the rise.
Worries about the future grow
The most alarming shift was the dramatic fall in the Expectations Index — based on consumers' short-term outlook for income, business, and labor market conditions.  The Index dropped 9.6 points to 65.2, its lowest level in 12 years.

This paints a grim outlook for the US economy, which relies heavily on strong consumer spending — especially amid recent job cuts coming out of DOGE (Department of Government Efficiency.) Consumers grew more pessimistic about future business conditions and confidence about future employment prospects fell to a 12-year low.

While we still expect the US economy to avoid a recession in 2025, slowing growth can weigh on the stock market.

Are you losing confidence about 2025?

feature image from Unsplash