U.S. consumer confidence dropped sharply in April to its lowest point since the early months of the COVID-19 pandemic, as fears over President Trump’s tariffs weigh heavily on the economic outlook.
The Conference Board reported Tuesday that its confidence index fell 7.9 points to 86, the weakest reading since May 2020. A separate measure of consumer expectations for income, business conditions, and jobs fell to 54.4, its lowest in over 13 years—well below the 80 threshold that typically signals a coming recession.
Nearly one-third of consumers expect hiring to slow, nearly matching levels last seen during the Great Recession. Many cite anxiety over rising prices tied to Trump’s widespread import tariffs. The AP-NORC Center found about half of Americans now fear a potential recession.
The drop in confidence coincided with significant market volatility. While stocks rebounded last week, the S&P 500 is down 6% in 2025, and the Nasdaq is off 10%.
More clarity is expected this week as reports on Q1 economic growth and April job numbers are set for release.
Sources
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