Washington. The trust of the US consumer collapsed in March at its lowest level in more than four years, with households fearing a recession and greater inflation due to tariffs.
The Board Conference reported that its consumer confidence index fell 7.2 points to 92.9 this month, its lowest level since January 2021. Economists consulted by Reuters had planned that the index register 94 points.
The agency explained that written responses to the consumer confidence survey showed that Concern about the impact of commercial policies, and in particular of tariffs, is increasing
and added that There were also more references than usual to economic and political uncertainty
.
The current situation index, based on the assessment of consumers of business conditions and the labor market, fell 3.6 points up to 13.5. And the indicator of future expectations of the survey reached its lowest level in 12 years and exceeded a level associated with a recession.
This indicator on future expectations fell 9.6 points up to 65.2, the lowest level in 12 years and well below the 80’s threshold that is usually a sign of recession.
The sales of new homes in the United States rose in February, although prices fell compared to the previous month, according to the data published by the Department of Commerce.
In February, 676 thousand new houses and departments were sold at anuized rate, which represents a slight increase with respect to the 664 thousand sales recorded the previous month. It also exceeds the registered figure a year ago in the same period of 643 thousand.
According to the consumer financing company Synchrony Financial, US consumers are beginning to stop their expenses in response to high prices and worsening economic perspectives.
The Americans have accumulated more debts amid financial tensions, with an increase in delinquency in car loans, credit cards and mortgage credit, as the Federal Reserve declared last month.
The fact of squeezing the belt indicates that the Americans, whose finances enjoy good health in general, are preparing for their finances to reside more, said Max Axler, Credit Director of Synchrony.