Trump tariffs, inflation fears push consumer confidence to multiyear low

• Consumers' pessimism is raising fears about the economy's health, even as official government indicators suggest healthy conditions.

By the numbers: The Conference Board's consumer confidence index fell by more than 7 points in March to 92.9.

What they're saying: "Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022," Stephanie Guichard, a senior economist at The Conference Board, said in a release.

Zoom in: A sub-index that measures confidence in the short-term outlook for income, business and employment conditions dropped almost 10 points to the lowest level in 12 years.

• Just one sub-index improved, though only slightly: Consumers' assessment of the current labor market ticked up.

The big picture: The Conference Board said consumers' write-in responses indicated that Trump policies — supportive or not — far outweighed other factors affecting Americans' view of the economy.

• They also note that consumers are worried most about inflation.
• Average inflation expectations for the year ahead rose again, to 6.2% from 5.8% the prior month, "as consumers remained concerned about high prices for key household staples like eggs and the impact of tariffs," the Conference Board said.

The bottom line: CEOs and consumers alike feel gloomier about the economy now — raising the risk that those jitters translate into less hiring, investment or purchases.