Americans' economic optimism took a sharp turn in April, as the Conference Board's consumer confidence index slid 7.9 points to 86 – its lowest level since May 2020, at the height of the pandemic.
Nearly one-third of consumers now predict slower hiring in the months ahead, echoing the uncertainty last seen in April 2009 amid the Great Recession. Tariffs have emerged as a key worry, with many households bracing for higher prices after new levies introduced by President Donald Trump.
A recent survey by the Associated Press–NORC Center found that about half of Americans are anxious about a potential recession. This sentiment is driving cautious spending habits that could further dampen growth.
Carl Weinberg, chief economist at High Frequency Economics, warns: 'Rattled consumers spend less than confident consumers. If confidence sags and consumers retrench, growth will go down.' The data suggests we're already seeing the effect, as household budgets tighten.
The story looks even more challenging when we zoom in on short-term expectations. The measure covering income, business conditions, and the job market plunged 12.5 points to 54.4 – the lowest in over 13 years – signaling widespread nervousness about tomorrow's economy.
As consumers navigate these choppy waters, entrepreneurs, travelers, and global citizens alike will be watching closely. The coming months could redefine spending patterns and reshape the recovery path.
Reference(s):
cgtn.com
