Consumers’ short-term expectations fall to lowest level in 12 years

Consumer confidence continued to decline in March, as a new report showed compared to the short -term expectations of consumer overwhelmed by the lowest level in 12 years.

The Conference Council’s expectations, which measures consumers’ expectations in the short term of personal income, as well as the conditions of the labor market and the market, decreased by 9.6 points to 65.2-which is the lowest level in ten years and much less than the threshold of 80, which usually indicates stagnation.

The consumer confidence index decreased in March 7.2 points to 92.9, fell to less than 94 surveyed by the economists. This is the least reading of the index since January 2021.

“The confidence of the consumer has decreased for a month in a row in a row in March, as it is relatively less than the narrow range that prevailed since 2022,” said Stephanie Gouachard, chief economist of the Conference Council of the Conference Council.

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Consumer confidence fell more in March than economists expected. (Justin Sullivan / Getty Emp)

“Among the five components of the index, the evaluation of consumers was improved only for the current labor market conditions, albeit a little,” said Johohshard. “The views of the current working conditions weakened the approach of neutrality. Consumer expectations were particularly dark, with pessimism about future working conditions deepening and confidence in the decrease in job opportunities in the future to the lowest level in 12 years.”

She added: “Meanwhile, consumers optimism about future income – which has withstood strongly in the past few months – has disappeared to a large extent, indicating that concerns about the economy and the labor market have begun to spread in consumer assessments of their personal positions.”

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Consumers have expressed their concerns about inflation as well as definitions that lead to high prices. (Sam Wolfe / Bloomberg via / Getty Images)

The Conference Council report indicated that the decrease in confidence was mainly driven by consumers over 55 years old, and less than 35 and 55 years old. Confidence between consumers under the age of 35 has increased, such as improving their current status assessments than compensation for pessimistic expectations.

Low confidence has been seen widely through income groups, with the only exception of families that earn more than $ 125,000 a year.

The average inflation forecast increased for 12 months for consumers again from 5.8 % in February to 6.2 % in March, noting that the Conference Council “remained concerned about the high prices of major family foodstuffs such as eggs and the effect of definitions.”

How many price reductions does the market expect this year?

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Consumer plans to buy homes have decreased on a six -month average. (Allen J. Schaaben / Los Angeles Times Via / Getty Images)

Important purchasing operations plans such as homes and cars have decreased on a six-month average moving basis, although plans to buy large elements such as devices and electronics have increased-perhaps because of consumers looking to buy before the instant prices increase.

The Conference Council indicated that the respondents in its survey, who presented responses in writing, were weavier policies and expressed their concerns about inflation and the impact of the trade war on prices.

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“Comments on the current administration and its policies, both positive and negative consumer responses on what affects their opinions in the economy. Writing responses also showed that inflation is still a great concern for consumers and that fears of the impact of commercial policies and definitions in particular. There were also signals than other other than that of the lack of policies in politics.”