U.S. Consumer Confidence Hits Five-Year Low Over Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. consumer confidence dropped for the fifth straight month in April, reaching its lowest level since May 2020. Tariff concerns and recession fears are weighing heavily on Americans’ expectations for the future. Economists warn that the sharp decline could signal slowing growth and hiring ahead.
U.S. Consumer Confidence Drop: Quick Looks
- Consumer confidence index fell to 86, the lowest since May 2020.
- Tariff concerns and economic uncertainty are fueling recession fears.
- Short-term expectations index plunged to 54.4, a 13-year low.
- Nearly one-third of Americans expect hiring to slow down.
- Stock market volatility also contributed to the drop.
- Higher-income households and middle-aged Americans saw biggest declines.
- AP-NORC survey finds half of Americans worry about a coming recession.
- S&P 500 down 6%, Dow off 5%, Nasdaq down 10% in 2025.
U.S. Consumer Confidence Hits Five-Year Low Over Tariffs
Deep Look
U.S. Consumer Confidence Plummets to Five-Year Low as Tariff Worries Mount
WASHINGTON — Americans’ optimism about the economy is cratering, with consumer confidence sinking to levels not seen since the early days of the COVID-19 pandemic.
The Conference Board reported Tuesday that its consumer confidence index tumbled 7.9 points in April to 86, marking the fifth consecutive monthly decline. This is the lowest reading since May 2020, when the economy was still grappling with pandemic-related shutdowns.
Consumers’ anxieties are largely being driven by the effects of President Donald Trump’s sweeping tariffs. Rising costs on imported goods are eroding purchasing power, and fears of a recession are growing.
A troubling detail: nearly one-third of Americans now expect hiring to weaken in the months ahead — a level not seen since April 2009, during the depths of the Great Recession.
Short-Term Expectations Collapse
A separate measure tracking Americans’ short-term outlook for income, business conditions, and job availability plunged 12.5 points to 54.4 — its worst level in over 13 years. Typically, when this figure falls below 80, it signals an imminent economic recession.
“The sharp deterioration in expectations highlights the risk of a downturn if consumer spending falters,” said Dana Peterson, chief economist at The Conference Board.
Upcoming Economic Data Could Confirm Slowdown
The gloomy consumer outlook comes just before critical economic reports. On Wednesday, the Commerce Department will release data on first-quarter U.S. economic growth, expected to show a slowdown after robust holiday spending.
On Friday, the Labor Department will report on hiring and unemployment. While economists still predict moderate job gains, several forecasts warn that hiring could cool substantially.
Who’s Feeling It the Most?
The confidence drop was steepest among households earning over $125,000 annually and among Americans between 35 and 55 years old — two groups typically more resilient during economic shocks.
Financial market turmoil didn’t help. Volatility hammered stocks and bonds over recent months, with the S&P 500 down 6% so far in 2025, the Dow down 5%, and the Nasdaq plummeting 10%.
Even though markets rebounded slightly last week, lingering fears about tariffs, inflation, and recession continue to weigh heavily on American wallets — and attitudes.
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