March 2025 Consumer Confidence Declines Amid Economic Concerns

Consumer confidence in the United States has taken a significant hit in March 2025, reflecting increasing worries about the economy and job market. According to the latest report from the Conference Board, the monthly confidence index for current conditions fell to 92.9, marking a decrease of 7.2 points. This represents the fourth consecutive month of declining confidence, falling short of economists’ expectations, who had anticipated a reading of 93.5.

Future Outlook at a Record Low

More concerning is the decrease in the index for future expectations, which plummeted by 9.6 points to 65.2. This marks the lowest level recorded in over a decade and falls below the critical threshold of 80 that often signals a potential recession. The future expectations index gauges respondents’ outlook on income, job prospects, and overall business conditions.

Dwindling Optimism in Personal Finances

Stephanie Guichard, senior economist at the Conference Board, noted, “Consumers’ optimism about future income — which had held up quite strongly in the past few months — largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations.” This sentiment is evident across various demographics, particularly among those aged 55 and older.

Impact on Stock Market Expectations

The decline in consumer confidence is also reflected in changing attitudes towards the stock market. Only 37.4% of respondents anticipate higher equity prices over the next year, a drop of 10 percentage points from February. This is particularly notable as it indicates the first negative sentiment regarding stock prices since late 2023.

Labor Market Concerns Intensify

Regarding employment, the outlook has worsened considerably. The percentage of respondents expecting job growth fell to 16.7%, while those predicting a decrease in available jobs climbed to 28.5%. This marks a shift from February’s figures of 18.8% and 26.6%, respectively, indicating rising anxiety about job security.

Contributing Factors

The economic unease coincides with ongoing uncertainty regarding tariff policies proposed by the Trump administration, alongside a fluctuating stock market and other surveys indicating a general decline in consumer sentiment.

Conclusion

As consumer confidence continues to deteriorate amidst economic uncertainties, it remains crucial for both businesses and policymakers to address the underlying factors contributing to this decline. Ongoing monitoring of these trends will be essential to understanding future economic developments.