U.S. consumer confidence took another hit in March, marking the fourth month in a row of decline, according to the latest survey by the Conference Board released on Tuesday. The consumer confidence index fell to 92.9, down from February’s reading and falling short of analysts’ expectations of 94.2.
“Consumers are increasingly worried about the state of the economy and their own financial prospects,” said Stephanie Guichard, senior economist of global indicators at the Conference Board. “Pessimism about future business conditions is deepening, and confidence in future employment opportunities has plummeted to a 12-year low.”
The Expectations Index, which reflects consumers’ short-term outlook on income, business, and labor market conditions, dropped sharply by 9.6 points to 65.2. This is the lowest level in over a decade and significantly below the threshold of 80 that often signals an impending recession.
Guichard noted that optimism about future income has largely disappeared. “Worries about the economy and the job market are now influencing how consumers view their personal financial situations,” she added.
For the first time since the end of 2022, consumers turned negative about the stock market, likely reacting to recent market volatility. In March, only 37.4% of consumers expected stock prices to rise over the coming year, a decrease of nearly 10 percentage points from February and a significant drop from the peak in November 2022.
The survey, based on an online sample, reflects sentiments leading up to March 19, the cutoff date for the latest results.
