US Consumer Confidence Drops to COVID-Era Low Amid Trade War

WASHINGTON — Americans’ confidence in the economy has fallen for the fifth consecutive month, reaching its lowest point since the COVID-19 pandemic began. The Conference Board released data on Tuesday indicating that the consumer confidence index dropped 7.9 points in April to 86, the lowest level since May 2020.

Nearly one-third of consumers now anticipate a slowdown in hiring over the coming months. This expectation nearly mirrors the levels experienced in April 2009, during the depths of the Great Recession.

The decline in consumer sentiment is largely attributed to rising anxiety surrounding tariffs imposed on goods, which many believe could further inflate prices. According to The Associated Press, a significant portion of Americans are concerned about the potential for a recession.

“Rattled consumers spend less than confident consumers,” noted Carl Weinberg, chief economist at High Frequency Economics. “If confidence sags and consumers retrench, growth will go down.”

A specific measure tracking short-term expectations for income, business conditions, and the job market fell 12.5 points to 54.4, marking the lowest level in over 13 years. Generally, readings below 80 can signal an impending recession.

The Conference Board report suggests that consumers’ apprehensions are likely tied to broader financial market instability observed earlier in the month. Households earning over $125,000 and consumers aged 35 to 55 reported the steepest declines in confidence.

Despite recent market rebounds, the S&P 500 index remains down by 6% this year, while the Dow Jones has decreased by 5%. The Nasdaq index has experienced a 10% drop in 2025.

Many consumers also indicated they are curbing spending. The report reveals a two-year high in the number of Americans fearful of a recession. Additionally, fewer individuals plan to make significant purchases such as homes or cars. The proportion of consumers intending to budget for vacations or dining out has notably decreased.

In the upcoming days, further economic insights will be provided as the government is scheduled to release reports on economic growth in the first quarter of the year and labor statistics.