Key Takeaways:

• U.S. consumer confidence index fell to 92.9, marking a drop of 7.2 points in March.
• This decline is the fourth consecutive month of reduced consumer sentiment and the lowest since January 2021.
• Concerns about tariffs and inflation are driving the pessimism, with two-thirds of Americans fearing a recession.

The latest survey by the Conference Board reveals that U.S. consumer confidence has plummeted to a 12-year low, driven by growing anxiety regarding tariffs and inflation. The consumer confidence index decreased by 7.2 points in March, landing at 92.9, which is significantly below analysts' expectations of 94.5, as reported by Forbes and Reuters.

The survey indicates that Americans' short-term expectations for income, business, and the job market dropped to 65.2, which is the lowest reading in over a decade and significantly below the 80-point threshold that typically signals an impending recession. This downturn aligns with results from a similar consumer sentiment survey by the University of Michigan, providing further evidence of the prevailing financial unease among consumers, noted Al Jazeera.

About two-thirds of consumers now believe a recession is likely in the near future, which reflects a consistent level of pessimism noted over the past few months amid ongoing economic uncertainties. “Consumer optimism about future income has largely vanished,” remarked Stephanie Guichard, a senior economist at the Conference Board, highlighting the shift in sentiment due to fears over economic stability.CBS News

The continuing impact of tariffs, particularly those associated with President Trump's policies, is exacerbating the situation. These tariffs have created confusion and uncertainty for businesses, making it difficult for them to plan for future operations. Some major retailers like Walmart and Target have recently revised their profit forecasts downwards due to these economic pressures and the changing behavior of consumers, who are increasingly seeking bargains as prices rise.

Despite this bleak assessment, financial markets have shown resilience, with the S&P 500 recovering nearly 5% since mid-March. This recovery has been chiefly driven by sectors that traditionally perform poorly during recessions but have seen growth in stock prices, particularly tech companies such as Nvidia and Tesla.Forbes

The downturn in consumer confidence underscores the importance of the consumer sector, which accounts for approximately two-thirds of U.S. GDP. A continuing decline in confidence could have significant repercussions as households scale back on spending in response to worries over their financial futures.

For more detailed information, you can refer to the original articles from Forbes, Reuters, Al Jazeera, and CBS News.