In March, consumer confidence was dealt another blow. The expectations index, or future outlook, fell to a 12-year low, according to The Conference Board. The measure of future expectations dropped dramatically. It fell 9.6 points to 65.2, a historic low in more than a decade. This reading is well south of the 80 threshold, long looked at as a signal of an impending recession. Confidence is reeling. Americans are growing cynical about the labor market too, with fewer Americans expecting job prospects to get any better.
The Conference Board’s data underscores a troubling trend toward consumer pessimism about future economic conditions. Their monthly confidence index for current conditions dropped to 92.9. This decrease of 7.2 points is a sign that this is the fourth month in a row of contracting activity. Diminishing confidence The lack of confidence among workers aged 55+ has significantly decreased. This decline, along with uncertainty felt across the board regardless of income level, has contributed to the steep decline overall.
The share of consumers predicting more jobs opening up has fallen to 16.7%, a decline from February’s 18.8%. In contrast, the share expecting a net gain in jobs has dropped to 28.5%, down from 26.6%. These adjustments are a response to growing consumer sentiment related to jobs.
"Consumers' optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers' assessments of their personal situations," said Stephanie Guichard, senior economist for global indicators at The Conference Board.
Economists surveyed by Dow Jones had been expecting the current conditions index to come in at 93.5. That’s just an example of the surprising breadth of the drop. The widespread nature of the decline in confidence shows increasing concern about what lies ahead, which could affect spending and investment decisions.
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