Summary
- It was announced that the U.S. March consumer confidence index fell to 92.9, the lowest in four years.
- It was also reported that consumer expectations for the future have dropped to their lowest in 12 years.
- It was stated that consumer sentiment appears to be rapidly deteriorating due to the tariff war and federal government layoffs.
Consumer Sentiment Rapidly Deteriorates Due to Tariff War and Federal Government Layoffs
Consumer Expectations for the Future at Lowest in 12 Years
The U.S. March consumer confidence index has fallen to its lowest level in four years. Additionally, consumer expectations for the future have dropped to their lowest in 12 years.
On the 25th (local time), the U.S. Conference Board announced that the March consumer confidence index recorded 92.9, a 7.2-point drop from the previous month. Bloomberg had predicted 94, and the Wall Street Journal had forecasted 93.5.
Previously, the February consumer confidence index also recorded a significant drop to 98.3, the largest since August 2021, and was revised to 100.1. The U.S. consumer confidence index has declined for four consecutive months since Trump's election in December.
Moreover, consumer expectations for the future have fallen to their lowest level in 12 years.
Right after Trump's election in November, optimism about tax cuts, deregulation, and a business-friendly White House drove business and household confidence to a 16-month high.
However, since then, President Trump's excessive tariff threats have fueled concerns about inflation and economic recession, leading to continued declines in the stock market. The ongoing tariff war has increased inflationary pressures, and large-scale layoffs of federal government employees seem to be deteriorating consumer sentiment, which has supported U.S. economic growth.
Guest reporter Kim Jung-ah kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
