U.S. consumer confidence continued its sharp 2025 decline as Americans’ views about their financial futures fell to a 12-year low, driven by rising concerns over tariffs and inflation.

Summary

U.S. consumer confidence fell to a 12-year low in March 2025, dropping 7.2 points to 92.9, as reported by the Conference Board.

The short-term expectations index fell 9.6 points to 65.2, raising recession concerns.

Rising tariffs and persistent inflation fueled pessimism. Major retailers like Walmart and Target reported cautious forecasts, citing economic uncertainty.

Administration officials downplayed the data, arguing consumer confidence no longer correlates strongly with spending trends.