New York, NY – May 6, 2025 – The Conference Board Consumer Confidence Index® plummeted by 7.9 points in April, reaching 86.0 (1985=100), marking the fifth consecutive monthly decline. The latest data reflects heightened concerns over the economic outlook and consumer sentiment, with expectations reaching their lowest levels since the early days of the COVID-19 pandemic.

The drop in confidence was largely driven by a sharp downturn in consumer expectations. The Expectations Index, which gauges consumers’ short-term outlook for income, business, and labor market conditions, fell by 12.5 points to 54.4, a level not seen since October 2011, well below the critical 80-point threshold that often signals the possibility of a recession.

Key Findings from April 2025 Data:

• Present Situation Index: The Present Situation Index, which reflects consumers’ current assessments of business and labor market conditions, decreased slightly by 0.9 points to 133.5, remaining relatively stable compared to past months.
• Sharp Drop in Economic Expectations: Consumers’ views on the future worsened across all key components. Pessimism about future business conditions, job opportunities, and income prospects dominated responses. Notably, 32.1% of consumers expect fewer jobs in the next six months, almost matching levels seen during the height of the Great Recession in April 2009.
• Inflation and Stock Market Concerns: Inflation concerns remained front and center, with 48.5% of consumers expecting stock prices to fall in the next 12 months, the highest proportion since October 2011. Average 12-month inflation expectations reached 7%, reflecting ongoing concerns about rising costs.
• Tariffs and High Prices: For the first time, tariffs emerged as a top concern among consumers, with many citing the negative impacts of tariffs on prices and the broader economy. High living costs, particularly in essential areas like gas and food, continued to shape consumer views. Although some declines in gas and food prices were noted, inflation remains a pressing issue.
• Future Financial Situations: Despite weaker sentiment, consumers’ views of their own financial situation remained positive but showed noticeable signs of weakening. The proportion of consumers anticipating a recession within the next year hit a two-year high.
• Decline in Consumer Spending Intentions: On a six-month moving average basis, purchasing plans for homes, cars, and vacations showed declines. Plans to purchase big-ticket items like appliances and electronics also softened, with a notable decrease in consumer intent to spend on dining out—a key service category.

Economic Impact and Outlook:
Stephanie Guichard, Senior Economist at The Conference Board, remarked on the troubling trend: “Consumer confidence has now fallen for five consecutive months, with the Expectations Index at its lowest point since 2011. This decline reflects deepening concerns about future economic conditions. Notably, the sharp rise in pessimism about job prospects and future income indicates that worries about the economy are now more personal for many Americans.”

Looking Ahead:
As inflation concerns remain high, coupled with consumer apprehension about tariffs, stock market volatility, and rising interest rates, the outlook for consumer confidence in the coming months appears uncertain. The continued decline in consumer confidence may signal further economic challenges ahead unless there is a significant shift in sentiment or economic conditions.

For more information about the Conference Board Consumer Confidence Index®, visit www.conferenceboard.org.

About The Conference Board

The Conference Board is a nonprofit research organization that provides trusted insights for businesses, governments, and other organizations around the world. Founded in 1916, it is known for its forward-looking economic data and thought leadership on global economic trends, labor markets, and social issues.