US consumer confidence fell this month by the most since August 2021 on concerns about the outlook for the broader economy, adding to evidence that uncertainty over the Trump administration’s policies is weighing on households.
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The Conference Board’s gauge of confidence decreased 7 points in February to 98.3, marking the third straight decline, data released on Tuesday showed. The figure was below all estimates in a Bloomberg survey of economists. Stocks and bond yields fell after the report.
A measure of expectations for the next six months also fell by the most in 3½ years, while a gauge of present conditions declined more modestly.
The drop in confidence was broad across age groups and incomes. Consumers were more pessimistic about current and future labour-market conditions, as well as the outlook for incomes and business conditions.
Perceptions of present and future financial situations worsened, and the share of respondents expecting a recession in the next year rose to a nine-month high.
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“References to inflation and prices in general continue to rank high in write-in responses,” Stephanie Guichard, senior economist of global indicators at The Conference Board, said in a statement.
“Most notably, comments on the current administration and its policies dominated the responses.”