From Yahoo Finance: 2025-03-25 10:14:00

U.S. consumer confidence continued to decline in 2025 due to rising anxiety over tariffs and inflation, hitting a 12-year low. The Conference Board reported a 7.2 point drop in March to 92.9, the lowest since 2021 and below expectations. Americans’ short-term outlook for income, business, and jobs also fell to a 12-year low.

The proportion of U.S. consumers expecting a recession is at a nine-month high, indicating potential economic trouble ahead. Despite officials downplaying the impact on consumer spending, some major retailers like Walmart and Target are feeling the effects. Walmart slashed its profit forecast due to higher prices, while Target predicts profit pressure due to tariffs.

Other retailers like Macy’s, Best Buy, and Abercrombie & Fitch are cautious about 2025 expectations, citing economic uncertainty. The board’s survey showed a decline in purchasing plans for homes and cars, but an increase in plans to buy big-ticket items like appliances before potential price increases from tariffs.

Inflation has remained above the Federal Reserve’s 2% target, combined with announced tariffs, leading to consumer concerns about spending. Despite a strong holiday season, U.S. retail sales fell sharply in January. While consumer spending picked up in February, it was only tepidly as consumer confidence continues to decline.

Read more: Consumer confidence is sliding as Americans’ view of their financial futures slumps to a 12-year low