Americans’ confidence in the economy has dropped to its lowest level for the fifth straight month since the COIVD-19-19 pandemic, as anxiety about the impact of tariffs has taken a huge damage to consumer expectations for future growth. The conference committee said Tuesday its consumer confidence index fell 7.9 points in April to 86, the lowest reading since May 2020.
These figures reflect a rapidly acidifying sentiment among consumers, most of whom expect prices to rise due to widespread tariffs imposed by President Donald Trump. According to a survey by the Associated Press-Downtown New York City, about half of Americans are also worried about the potential of recession.
How this frustrating sentiment translates into spending, hiring and growth will become clearer in the coming days and weeks. On Wednesday, the government will report U.S. economic growth in the first three months of the year, with economists saying it will show a sharp slowdown as consumers withdraw spending after a strong shopping season at the winter vacation event.
These figures reflect a rapidly acidifying sentiment among consumers, most of whom expect prices to rise due to widespread tariffs imposed by President Donald Trump. According to a survey by the Associated Press-Downtown New York City, about half of Americans are also worried about the potential of recession.
How this frustrating sentiment translates into spending, hiring and growth will become clearer in the coming days and weeks. On Wednesday, the government will report U.S. economic growth in the first three months of the year, with economists saying it will show a sharp slowdown as consumers withdraw spending after a strong shopping season at the winter vacation event.
On Friday, the Labor Department will release its latest report on recruitment and unemployment rates. Overall, economists expect it will still show steady job growth, although some forecasts may show drastically reduced hiring.
