Consumer confidence in the U.S. has dropped to its lowest point since January 2021, according to a new report from the Conference Board. The index fell 7.2 points in March to a reading of 92.9, reflecting growing pessimism among Americans about the economy. This decline continues a downward trend that began in December 2024, following the U.S. presidential election.

More Americans are now expecting higher inflation and predicting an impending recession, signaling concerns over economic stagnation, or “stagflation.” The survey showed a significant drop in expectations for income, business, and job market conditions over the next year. About 9% of respondents anticipate a recession within the next 12 months.

The economic uncertainty is partly driven by President Trump’s trade policies, including recent tariffs on Mexico, Canada, and the European Union, as well as upcoming reciprocal tariffs. These policies have caused confusion and concern among businesses, consumers, and investors. Despite this, some economists argue that consumer confidence may not fully reflect the broader economic picture, as jobs data remains strong with a 4.1% unemployment rate.