U.S. Consumer Confidence Plummets to Near-Historic Lows in April
Consumer confidence in the United States dropped sharply in April, reaching levels not seen since the early days of the pandemic, according to the latest data from the Conference Board. The index fell to 92.9, down from 104.7 in March, marking its lowest point since February 2021. This decline reflects growing unease among households over inflation, job security and broader economic uncertainty.
The Conference Board’s Consumer Confidence Index, a key barometer of household sentiment, has now declined for three consecutive months. The present situation index, which assesses consumers’ views of current business and labor conditions, slipped to 134.2 from 148.1. Meanwhile, the expectations index, which gauges short-term outlook for income, business, and labor conditions, fell to 65.3 from 77.1 — its lowest reading since March 2009, during the depths of the Great Recession.
“Consumers are increasingly worried about the sustainability of economic growth,” said Dana Peterson, Chief Economist at the Conference Board. “Inflation remains a top concern, particularly for essential goods like food and energy, and there’s mounting anxiety about whether the labor market can hold up under higher interest rates.”
The drop in confidence comes amid persistent inflationary pressures, with the Consumer Price Index (CPI) rising 3.5% year-over-year in March, according to the U.S. Bureau of Labor Statistics. While this represents a moderation from peak inflation rates in 2022, prices remain significantly above the Federal Reserve’s 2% target. Energy costs, in particular, have contributed to household strain, with gasoline prices averaging $3.68 per gallon nationally in early April, up from $3.41 a month earlier, per data from the U.S. Energy Information Administration.
Labor market concerns are also weighing on sentiment. Although unemployment remains low at 3.8% as of March, layoffs in sectors such as technology, finance, and retail have raised fears of broader job insecurity. The Conference Board survey found that the percentage of consumers expecting jobs to be “harder to get” in the next six months rose to 28.4%, up from 24.1% in March.
Interest rates, held at a 23-year high by the Federal Reserve to combat inflation, continue to affect borrowing costs for mortgages, auto loans, and credit cards. The average 30-year fixed mortgage rate stood at 6.81% in early April, according to Freddie Mac, limiting housing affordability and dampening sentiment among potential homebuyers.
Despite these headwinds, consumer spending has remained relatively resilient, supported by strong wage growth and pandemic-era savings. Real personal consumption expenditures increased 0.4% in February, the latest available data from the Bureau of Economic Analysis shows. However, economists warn that confidence often precedes spending behavior, and a prolonged decline could signal a slowdown in economic activity in the coming months.
The Conference Board plans to release its May Consumer Confidence Index on May 28, 2026, which will provide further insight into whether April’s drop represents a temporary fluctuation or the beginning of a more sustained downturn in household sentiment.
For ongoing updates on economic indicators, consumers and analysts can refer to the Conference Board’s official website and the U.S. Bureau of Labor Statistics’ monthly releases.
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