Consumer expectations in the short term decrease to the lowest level in 12 years

Consumer confidence Continue to decline in March, with a new report showing a single measurement of the short -term consumer expectations in the lowest level in 12 years.

The Conference Council’s expectations, which measures consumers’ expectations in the short term of personal income, as well as the conditions of the labor market and the market, decreased by 9.6 points to 65.2-which is the lowest level in ten years and much less than the threshold of 80, which usually indicates stagnation.

the Consumer confidence index He decreased in March 7.2 points to 92.9, decreased to less than 94 surveyed by Economists by LSEG. This is the least reading of the index since January 2021.

“The confidence of the consumer has decreased for a month in a row in a row in March, as it is relatively less than the narrow range that prevailed since 2022,” said Stephanie Gouachard, chief economist of the Conference Council of the Conference Council.

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One of the five components of the index, only the evaluation of the present consumers laboratory Gouchard said the conditions improved, albeit a little. The opinions of the current working conditions weaken to approaching neutrality. Consumer expectations were particularly dark, with pessimism about future working conditions deepening and confidence in future employment prospects to the lowest level in 12 years. ”

She added: “Meanwhile, consumers optimism about future income – which has withstood strongly in the past few months – has disappeared to a large extent, indicating that concerns about the economy and the labor market have begun to spread in consumer assessments of their personal positions.”

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The Conference Council report indicated that the decrease in confidence was mainly driven by consumers over 55 years old, and less than 35 and 55 years old. Confidence between consumers under the age of 35 has increased, such as improving their current status assessments than compensation for pessimistic expectations.

Low confidence has been seen widely through income groups, with the only exception of families that earn more than $ 125,000 a year.

The average inflation forecast for consumers increased for 12 months again from 5.8 % in February to 6.2 % in March, noting that the Conference Council “remained concerned about the high prices of the main family Foods like eggs And the effect of definitions.

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Mission purchase plans such as homes and cars have decreased on a six-month average basis, although the plans to purchase other large elements such as devices and electronics are increasing-perhaps because of consumers who are looking to buy before Instant prices definitions.

The Conference Council indicated that the respondents in its poll who submitted the writing responses were burdened Trump administration policies He expressed his concerns about inflation and the impact of trade war on prices.

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“Comments on the current administration and its policies, both positive and negative, consumers’ responses to what affects their views of the economy. Writing responses also showed that inflation is still a major concern for consumers and that concerns about their impact Commercial policies and definitions In particular, height. There were also more references than usual to economic and political uncertainty. “