Consumer confidence drops for fifth month, inflation fears increase, potential recession indicated
From Yahoo Finance: 2025-04-29 10:45:00
Consumer confidence plummeted in April for the fifth consecutive month to its lowest level since the beginning of the pandemic. The Conference Board’s Index dropped to 86, missing economists’ expectations of 88. The Present Situation and Expectations Index also decreased, signaling a potential recession as inflation expectations rose to 7%.
The survey was conducted up to April 21, including the aftermath of President Trump’s “Liberation Day” tariff announcement, influencing consumer responses. Yelena Shulyatyeva, senior economist at the Conference Board, noted that the severity of the tariffs surprised consumers, impacting their financial outlook and job expectations.
The Conference Board reported a significant increase in the number of consumers expecting fewer job opportunities in the next six months, a level not seen since the Great Recession. Job openings remained near a four-year low in March, raising concerns about a potentially significant rise in unemployment rates.
As worries over inflation and a weakening job market persist, future income outlooks have turned negative for the first time in five years. This shift indicates that economic concerns are now affecting consumers’ personal financial situations.