U.S. consumer confidence plummets to COVID-era low as trade war stokes anxiety

Americans' confidence in the economy slumped for the fifth straight month to the lowest level since the onset of the COVID-19 pandemic as anxiety over the impact of tariffs takes a heavy toll.

The Conference Board, a non-profit business membership and research organization, said on 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.

"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," reported The Associated Press about the development. About half of Americans are also worried about the potential for a recession, according to a survey by The Associated Press-NORC Center.

"Rattled consumers spend less than confident consumers," Carl Weinberg, chief economist at High Frequency Economics, was quoted as saying. "If confidence sags and consumers retrench, growth will go down."

Meanwhile, 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.