• Consumer confidence in the U.S. fell to a five-year low at 86, the lowest since May 2020.
• Nearly one-third of consumers anticipate a slowdown in hiring amid rising fears of recession.
• High inflation and tariffs from the Trump administration are causing increased concerns.

Consumer confidence in the U.S. has dropped for the fifth consecutive month, hitting its lowest level since the onset of the COVID-19 pandemic. The Conference Board reported that its consumer confidence index fell by 7.9 points in April, landing at 86, which mirrors conditions last seen in May 2020. This downturn is primarily driven by anxiety over tariffs imposed by the Trump administration, which has included significant levies on imports, particularly from China, and heightened fears of an impending recession, according to Huffpost, SCMP, and TRT Global.

The report details that nearly one-third of consumers anticipate a slowdown in employment similar to what was seen during the Great Recession in April 2009. A survey conducted by Associated Press-NORC indicates that about half of all Americans are concerned about a potential recession. "Rattled consumers spend less than confident consumers," noted Carl Weinberg, chief economist at High Frequency Economics, emphasizing the correlation between consumer sentiment and economic growth, according to India Times and TRT Global.

The sharp decline in optimism includes significant drops in short-term expectations of income, business conditions, and employment, which sank to 54.4, well below the threshold of 80 that often signals a recession. Notably, this reading is the lowest in over 13 years and reflects increasing inflation expectations, which have risen to approximately 7%, as consumers brace for potential price hikes, according to SCMP and India Times.

The broader implications of these trends suggest a downturn in consumer spending and economic growth, with many Americans planning to reduce expenditures on homes, cars, and other significant purchases. The government is expected to announce stark figures on economic growth for the first quarter soon, and analysts predict a noticeable slowdown in hiring despite job growth continuing, reflecting a complicated economic landscape impacted heavily by tariff policies and inflationary pressures, according to Huffpost and SCMP.