Despite the Biden administration’s attempts to convince Americans that the economy is improving, consumer confidence has been sliding for the last three months.
The Conference Board’s index of consumer confidence fell to 97 in April, down from 103.1 in March, data released Tuesday showed. That is the third consecutive monthly decline and the lowest reading since July 2022.
The decline brought the index lower than even the most pessimistic forecasts. The prior month’s reading was revised down from the preliminary score of 104.7.
The barometer of expectations for the next six months declined to 66.4, also the lowest since July 2022. The gauge of present conditions declined to 142.9.
“Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income,” said Dana M. Peterson, Chief Economist at The Conference Board.
Households surveyed expressed concerns over inflation, especially when it comes to staples such as food and gasoline. The national average price of a gallon of regular gas is up 3.4 percent over the past month, according to AAA. On Tuesday, it was $3.657, up from around three dollars at the start of the year.
“According to April’s write-in responses, elevated price levels, especially for food and gas, dominated consumer’s concerns, with politics and global conflicts as distant runners-up,” Peterson said.
Recent data from the government has shown that inflation has picked up this year, reversing the decline seen last year. Federal Reserve officials who began the year expecting to cut interest rates three times in 2024 have recently been indicating that cuts will likely come later—if they come at all—due to higher inflation.