Americans are increasingly anxious about their financial future, with consumer confidence falling to a 12-year low, driven by concerns over inflation and tariffs.
The Conference Board’s index dropped to 92.9 in March, marking the fourth consecutive monthly decline, and Americans’ short-term expectations for income, business, and jobs reached their lowest point in over a decade. Despite the declining confidence, some officials downplay the connection between consumer sentiment and actual spending, suggesting the economy continues to move forward. However, major retailers like Walmart and Target are cutting profit forecasts due to economic uncertainty and the impact of tariffs. The overall consumer mood reflects fears of a potential recession, leading to a decrease in demand for homes and cars, while big-ticket items like appliances are being bought in anticipation of price hikes from tariffs.