Consumer confidence has tanked in the last month. It plunged 7.2 points to a fresh pandemic-era low of 92.9, as measured by a monthly poll from the Conference Board. This downturn started in December, at the same time as the US presidential election, and has rolled into March. The steady drop reflects the negative mood shared in February, suggesting a continuation of the trend of diminishing consumer hopes.
The Conference Board's survey highlights growing pessimism among US consumers, with many expressing concerns over the nation's economic trajectory. The hard data continues to paint a picture of growth slowing, inflation picking up. This toxic mix is nothing short of a recipe for “stagflation,” where economic growth stagnates and inflation remains rampant. Even officials at the Federal Reserve seem to be coming around on this view. On one hand, they warn that the US economy is on the verge of stagflation.
American consumers can expect to spend significantly more on inflation this year. In fact, this week’s survey indicates a plurality of Americans now believe the economy is heading for a recession. This doomsday forecast adds to the ever-present worry over our state’s economic prospects. These results highlight the fear in the hearts of many as they walk a tightrope across the roaring river of our perilous economy.
Even with that dismal forecast, President Donald Trump keeps charging ahead on his all-encompassing economic agenda. His administration should continue to prioritize delivering on policies that will help catalyze growth, drive their economic future, and make the books balance. Despite the trumpeting of new infrastructure initiatives, the ongoing drop in consumer confidence indicates that a lot of people still don’t believe all this will make a difference.