Back to today’s briefing

Story perspectives

U.S. Consumer Confidence Hits Lowest Level Since 2021

2/26/2025

37 5

Summary

Story summary

U.S. consumer confidence plummeted to 98.3 in February, the lowest level since June and the largest drop since August 2021.
Inflation expectations increased from 5.2% to 6%, influenced by rising essential prices and tariff concerns.
The Expectations Index fell to 72.9, signaling recession worries, especially among consumers aged 35-55.
Retail sales are slowing down, despite low unemployment and ongoing GDP growth.

History

Historical Context

U.S. consumer confidence fell to its lowest since June 2021, echoing the early 1990s recession when inflation and economic uncertainty similarly eroded consumer sentiment. Historical patterns show that rising inflation often precedes significant drops in consumer confidence, signaling potential recessions and reduced spending.

1 of 2

Story summary

U.S. consumer confidence plummeted to 98.3 in February, the lowest level since June and the largest drop since August 2021.
Inflation expectations increased from 5.2% to 6%, influenced by rising essential prices and tariff concerns.
The Expectations Index fell to 72.9, signaling recession worries, especially among consumers aged 35-55.
Retail sales are slowing down, despite low unemployment and ongoing GDP growth.

1 / 2