Consumer confidence dipped to a five-year low in April

Consumer confidence fell to its lowest level in nearly five years in April, as concerns about the definitions and uncertainty in trade affecting economic expectations.

The Conference Council said on Tuesday that the consumer confidence index fell 7.9 points to 86 in April, which is the lowest reading since May 2020. The economists of Reuters had expected the index to slip to 87.5.

The expectations index, based on the short -term expectations of income conditions, work and labor market, decreased 12.5 points to 54.4, which is the lowest level since October 2011 and much less than the 80 threshold that usually indicates stagnation. The current situation index, based on consumer assessments of the current business and market conditions, decreased by 0.9 points to 133.5.

“The consumer’s confidence has decreased for a fifth consecutive month in April, as it decreased to levels that have not been seen since the beginning of the Kofid’s pandem

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The consumer confidence index in the conference council decreased to the lowest level in five years. (Reuters // Eduardo Monoz/Reuters)

“The decrease was largely driven by consumer expectations. The three components of expectations – work conditions, employment prospects and future income – all deteriorated sharply, reflecting the pessimism of the spread around the future,” said Gouchard. It is worth noting that the share of consumers who expect fewer jobs in the next six months (32.1 %) was higher than in April 2009, in the middle of the great recession. “

“The 12 -month inflation expectations were 7 % in April, which is the highest level since November 2022, when the United States was suffering from very high inflation,” Ghwehshard added.

Consumer reviews of their expected financial situation decreased to the lowest level since the question was asked for the first time in 2022.

The high prices caused by customs tariffs, and the fears of trade highlighted in the Big book in the Federal Reserve

Consumers have pointed out the high inflation expectations and the increased chance of recession. (Allen J. Schaaben / Los Angeles Times via Getty Images / Getty Images)

In addition, the perception of the American stagnation in the next 12 months increased to 72 % in April from about 65 % in December and January.

Consumer confidence report comes before the government’s report on economic growth that is scheduled to appear on Wednesday, and is expected to appear sharply growing in the first quarter, as companies have increased imports in an attempt to increase table costs forward due to customs tariffs.

The gross domestic product is likely to increase by an annual rate of 0.3 % in the first quarter, which lasted from January to March, which will be the weakest since the second quarter of 2022.

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The risks tend to the downside, with a decrease in the gross domestic product in the federal Atlanta at a rate of 0.4 % after controlling imports and exporting gold. The economy grew at a pace of 2.4 % in the fourth quarter.

Reuters contributed to this report.