US consumer confidence fell in April, marking the fifth consecutive monthly decline and reaching its lowest levels since the onset of the COVID-19 pandemic.
According to the Conference Board’s Consumer Confidence Index, consumer confidence fell by 7.9 points to 86 in April from 92.9 in March.
The Present Situation Index, which reflects consumers’ assessment of current business and labor market conditions, was down 0.9 points to 133.5.
Meanwhile, the Expectations sub-index, which measures consumers’ short-term outlook for income, business, and labor market conditions, fell to 54.4, which Comerica chief economist Bill Adams highlighted was its worst reading since the sovereign credit rating downgrade of 2011.
“Consumer spending should look better than GDP, but it were flattered in the quarter by consumers’ panic-buying of cars and other goods ahead of higher tariffs,” Adams said. “Given how freaked out consumers are, consumer spending likely slowed sharply in April.”
Adams added that, of the two major measures of consumer attitudes, one was bad in April while the other was "terrible." Businesses aren’t feeling much better, he added.
“Business survey data for April is spotty so far, but what’s in hand points to high levels of confusion, concern, and risk aversion due to tariff uncertainty,” Adams said.
“Unless something changes quickly to reassure Americans that the economy will be okay, the headwind from less consumer discretionary spending and less business capital spending could grow in the second quarter.”