Consumer Confidence from the Conference Board plunged again in April, revealing a nosedive in consumers’ short-term outlook for income, business, and labor market conditions. The drop was consistent across all age groups and political affiliations. This fall was headlined by the Future Expectations component which plunged 12.5 points to 54.4, the lowest level in just over 13 years. This is well below the Conference Board’s “recession warning level” of 80 (graph below).
One reason for the decline in consumer attitudes is uncertainty regarding personal finances, with nearly 1 in 5 respondents expecting their income to decrease in the next six months. As uncertain customers spend more carefully, the current level of gloom has the potential to spill over into the economy, as consumer spending is critical to economic growth and stability.