U.S. Consumer Confidence Drops 7.9 Points to 86.0, Lowest Since May 2020

In April, the U.S. Consumer Confidence Index experienced a significant decline, plummeting to nearly a five-year low. This drop was largely attributed to escalating concerns over tariffs, which have cast a shadow over the economic outlook. According to data from the U.S. Conference Board, the index fell by 7.9 points to 86.0, marking the lowest level since May 2020. This decline represents the fifth consecutive month of decreasing consumer confidence, a trend that has been exacerbated by the ongoing economic uncertainties.

Stephanie Guichard, Chief Economist of the World Business Federation Global Index, highlighted the severity of the situation, noting that the current level of consumer confidence is the lowest since the outbreak of the COVID-19 pandemic. The economic impact of tariffs has been particularly pronounced, as businesses have rushed to import goods to avoid the anticipated cost increases. This rush has led to a surge in imports, which is expected to be reflected in tomorrow's U.S. GDP data, showing a significant slowdown in economic growth for the first quarter.

The economic slowdown is further compounded by persistently high inflation and the economic impact of tariffs. These factors are prompting some households to cut back on spending and increase their savings, leading to a potential significant slowdown in consumer spending. The combination of these economic pressures is creating a challenging environment for both businesses and consumers, as they navigate the uncertainties brought on by tariffs and inflation.