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Consumer confidence declined 7.9 points in April to 86.0. The Consumer Confidence Index fell for the fifth consecutive month to levels not seen since the onset of the pandemic, driven mainly by consumers’ expectations.

The Present Situation Index, reflecting current business and labor market conditions, fell 0.9 points to 133.5. Meanwhile, the Expectations Index, which reflects consumers’ short-term outlook for income, business and labor market conditions, dropped 12.5 points to 54.4, the lowest level since October 2011 and well below the recession signal threshold of 80.

All components of the Consumer Confidence Index declined sharply, exhibiting pervasive pessimism about the future. Views of the current labor market situation softened, with 31.7% of consumers saying jobs were “plentiful,” down from 33.6% in March, while 16.6% said jobs were “hard to get,” up from 16.1%. Looking to the future, 32.1% anticipate there will be fewer available jobs in the next six months, nearly as high as April 2009 in the middle of the Great Recession. Additionally, expectations about future income turned negative for the first time in five years, with 18.2% of respondents anticipating decreases.

Although April’s drop in confidence was broad-based across age and income groups, the decline was steepest for consumers between the ages of 35 and 55 and among consumers in households earning more than $125,000 a year. Inflation expectations likewise ticked up to 7.0% in April, the highest since November 2022. Meanwhile, expectations for higher interest rates continued to rise. Consumers’ views of their current financial situation softened from March to the lowest level since 2022, while expectations for a recession in the next 12 months increased to a two-year high.

Consequently, buying plans for homes and cars declined, as did vacation plans. Plans to buy big-ticket items also lowered but remained slightly elevated on a six-month moving average. Mentions of trade and tariffs in written responses reached an all-time high. Respondents also mentioned the impact of the high cost of living, stock prices and uncertainty.