Consumer confidence sinks to 4-year low and it’s no secret why: Trump tariffs and trade wars
Consumers and businesses have grown very anxious about President Donald Trump’s trade wars — and they have increasing doubts about the future of the economy if the White House stays on the current path.
The latest signal of angst: The long-running survey of consumer confidence fell to a more than four-year low of 92.9 this month, from 100.1 in February, the Conference Board said Tuesday.
That’s the fourth decline in a row and the lowest reading since January 2021.
What’s more, consumer expectations about the future sagged to a 12-year low.
Confidence among companies and households had surged to a 16-month high after Trump’s election in November on optimism about tax cuts, deregulation and a business-friendly White House.
Yet the president’s tariffs have unwound the optimism, renewing worries about inflation and even a weakening economy. The stock market has also taken a beating, although it has partially recovered this week.
Before the report came out, economists polled by the Wall Street Journal had forecast a drop in the index to 93.5.
Key details: The so-called expectations index — which measures how people think the economy will look six months from now — tumbled to 65.2 from 74.8. That’s the weakest reading since 2013.
A sustained reading below 80 tends to signal a recession. [Continue reading…]