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US consumer confidence index declines for the fourth month in a row
US consumer confidence in the US economy continues to decline, reaching its lowest level in 12 years in March. According to the Conference Board, an independent analytical organisation, the index of current economic conditions fell by 7.2 points to 92.9, and the index of expectations for the future fell by 9.6 points to 65.2. This indicates growing fears of a possible recession, reported by CNBC.
Causes for concern: labour market, Trump’s economic plans and stock market plunge
The key factor behind the pessimism is uncertainty about future incomes and labour market stability. According to Stephanie Guichard, senior economist at the Conference Board, Americans are increasingly concerned about the economic situation and their own financial situation.
The decline in confidence was also caused by President Donald Trump’s plans to increase import duties, which triggered a sharp drop in US stock markets. In addition, expectations for stock market growth have deteriorated significantly over the past month: only 37.4% of respondents believe in further market growth, which is 10 points lower than in February.
Older Americans and all income groups were hardest hit
According to the survey, the highest level of pessimism is observed among people over 55, but the concern is shared by all age and financial groups.
Analysts note that such a decline in confidence could affect consumer activity, which is one of the key drivers of US economic growth. At the same time, economists expect that government decisions in the coming months will determine the further development of the situation.
