Crumbling Confidence: American Moody Economic Outlook Amid Tariff Tensions

Americans' confidence in the economy hit its lowest since the COVID-19 pandemic due to tariff worries. The consumer confidence index dropped to 86, reflecting fears of a recession. The pessimism is affecting spending, impacting potential hiring and economic growth as financial markets face volatility.

Americans' trust in the economy has plummeted to the lowest levels since the COVID-19 outbreak, driven by anxiety over tariffs. The Conference Board announced Tuesday a significant drop in consumer confidence to 86 points—unprecedented since May 2020.

Expectations have darkened, with nearly one-third anticipating slowed hiring, echoing the pressures of the Great Recession in 2009. Survey data from The Associated Press-NORC Centre reveals widespread consumer trepidation, with half worried about recession prospects.

Experts like Carl Weinberg caution that decreased consumer confidence can dampen economic growth. As Americans scale back on spending, forecasts predict a stark economic slowdown, reverberating through job markets and reducing consumption.

(With inputs from agencies.)