U.S. consumer confidence has dropped to its lowest point since May 2020, signaling rising economic anxiety as renewed tariff tensions and inflation fears grip the nation. According to data released Tuesday by The Conference Board, the Consumer Confidence Index fell sharply by 7.9 points in April to 86.0—marking the fifth consecutive monthly decline.
The plunge is being attributed largely to growing unease over President Donald Trump’s aggressive tariff proposals, which have sparked heightened market volatility and concern over future economic conditions. Mentions of tariffs in survey responses hit an all-time high, underscoring the impact of trade policy uncertainty on public sentiment.
“All three expectation components—business conditions, job prospects, and future income—saw steep declines, reflecting deep pessimism about the future,” said Stephanie Guichard, senior economist at The Conference Board.
Compounding the anxiety, nearly half of surveyed consumers—48.5%—expect stock prices to drop over the next year, the highest level of bearish sentiment since 2011. Inflation expectations have also surged, reaching 7%—the highest since late 2022—raising fears of a feedback loop where anticipated cost increases drive further price hikes.
While economic sentiment is clearly deteriorating, economists caution that spending habits may not immediately follow suit. “The real test will come when personal income data is released,” noted Navy Federal Credit Union economist Robert Frick. “Americans tend to keep spending if they have the means, even when confidence is shaken.