Story perspectives

Consumer Confidence Plummets Amid Rising Recession Fears

3/25/2025

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Summary

Consumers' Confidence Declines

U.S. consumer confidence decreased for the fourth month, falling 7.2 points to 92.9, the lowest since 2021.
The Expectations Index dropped to 65.2, indicating rising recession fears amid concerns about income and job stability.
Inflation expectations increased to 6.2%, influenced by higher essential prices and tariff uncertainties.
Older consumers experienced the most significant decline in confidence, while younger consumers showed slight improvement.

Summary

South Africa's Confidence Plummets

South Africa's Consumer Confidence Index fell sharply from -6 to -20 in Q1 2025, the lowest since early 2023.
High-income households saw a significant drop from -4 to -30, indicating growing economic pessimism.
A proposed 1% VAT increase over two years, without income tax adjustments, worsens consumer sentiment.
Diplomatic tensions with the U.S. and trade wars heighten economic uncertainty, affecting spending.
Experts caution that declining confidence may impede GDP growth, which depends on consumer spending.

History

Historical Context

U.S. consumer confidence has dropped to its lowest since 2021, echoing the economic fears of the 2008 financial crisis. Just as rising unemployment and inflation then eroded consumer trust, today's concerns over job stability and inflation reflect a similar anxiety about economic resilience and recovery.

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Consumers' Confidence Declines

U.S. consumer confidence decreased for the fourth month, falling 7.2 points to 92.9, the lowest since 2021.
The Expectations Index dropped to 65.2, indicating rising recession fears amid concerns about income and job stability.
Inflation expectations increased to 6.2%, influenced by higher essential prices and tariff uncertainties.
Older consumers experienced the most significant decline in confidence, while younger consumers showed slight improvement.

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