U.S. consumer confidence falls to eight-year low

Consumer sentiment in the U.S. has dropped from a near record-high to its lowest level since January 2012.

That’s according to a Refinitiv Ipsos survey conducted on March 24 to March 25.

With an index score of 46.0, overall consumer confidence this week is almost 15 points lower than it was just a few weeks ago (at  60.9),  with the drop driven by a decline in confidence about current conditions, the jobs situation and outlook and the investment climate. The current index is more than six points lower than the historical average of 52.6, but is still more than 10 points higher than it was a few months after the 2008 financial crisis,

Additionally, two-thirds of adults surveyed said that compared to six months ago, they are less comfortable making major purchases like a home or car (67%) and other large household purchases (66%).

Jharonne Martis, director of consumer research, pointed out that Americans remain hopeful as the Expectations sub-index (56.0) illustrates a smaller drop than the other sub-indices (under 8 points) and is ‘only’ about 5 points lower than historical average

“More U.S. consumers are filing for unemployment due to the coronavirus pandemic,” Martis said. “This is causing the overall Refinitiv Ipsos consumer sentiment to decline as consumers worry about their current conditions, employment and financial investments.”