US consumer confidence plunges to lowest in 5 years on tariff worries

Valdis Dombrovskis, left, Executive Vice President of the European Commission for Economy and Productivity, meets with Specialist Alexander Weitzman on the floor of the New York Stock Exchange, Monday, April 28, 2025. Photo by Richard Drew /AP

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WASHINGTON (AP) — Americans’ confidence in the economy slumped for the fifth straight month to the lowest level since the onset of the COIVD-19 pandemic as anxiety over the impact of tariffs takes a heavy toll on consumer expectations for future growth.

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The Conference Board said Tuesday that its consumer confidence index fell 7.9 points in April to 86, its lowest reading since May 2020. Nearly one-third of consumers expect hiring to slow in the coming months, nearly matching the level reached in April 2009, when the economy was mired in the Great Recession.

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The figures reflect a rapidly souring mood among Americans, most of whom expect prices to rise because of the widespread tariffs imposed by President Donald Trump. About half of Americans are also worried about the potential for a recession, according to a survey by The Associated Press-NORC Center.

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A measure of Americans’ short-term expectations for their income, business conditions and the job market plunged 12.5 points to 54.4, the lowest level in more than 13 years. The reading is well below 80, which typically signals a recession ahead.

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How this gloomy mood translates into spending, hiring, and growth will become clearer in the coming days and weeks. On Wednesday, the government will report on U.S. economic growth during the first three months of the year, and economists believe it will show a sharp slowdown as consumers pulled back on spending after a strong winter holiday shopping season.

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And on Friday the Labor Department will release its latest report on hiring and the unemployment rate. Overall, economists expect it should still show steady job gains, though some forecast it could show sharply reduced hiring.

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The sharp decline in consumer confidence also likely reflected the sharp swings in stock and bond prices that roiled financial markets. While all age groups and most income brackets reported lower confidence, the decline was steepest among households earning more than $125,000 and among consumers 35 to 55 years old.

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Though major U.S. markets rebounded over the past week, the S&P 500 is still down 6% for the year and the Dow Jones has lost 5%. The growth-heavy Nasdaq is down 10% in 2025.

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