Consumer confidence fell to a five -year lowest level in April

Consumer confidence It fell to its lowest level in nearly five years in April, when 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.

Expectations Index, based on the expectations of consumers in the short term of income, Business market conditions and employmentIt decreased 12.5 points to 54.4, which is the lowest level since October 2011 and is much lower than the 80 threshold that usually indicates the recession. 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 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. “

“Average of 12 months Inflation It reached 7 % in April, the highest level since November 2022, when the United States was suffering from very high enlargement. “

Consumers’ evaluation of their families expected Financial situation She refused 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

In addition, the perceived The possibility of American recession In the next 12 months, it rose to 72 % in April from about 65 % in December and January.

The consumer confidence report comes before the government’s report on the economic growth that will be due on Wednesday and is expected to appear sharply in the first quarter, as the incoming companies have increased. High costs due to definitions.

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 are tilted to the negative side, with Federal Reserve Atlanta GDP prediction a decrease 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.