But consumers are clearly worried about the future
of ConsumerAffairs-
U.S. consumer confidence edged higher in March, marking a second straight monthly gain.
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Short-term expectations declined, reflecting growing concern about inflation, jobs, and income.
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Rising costs tied to tariffs and oil prices weighed heavily on consumers outlook.
Despite surging gasoline prices and a lackluster job market, consumers appear to be feeling a little better about things. Consumer confidence rose modestly in March, extending a recent upward trend driven by improved perceptions of current economic conditions, even as Americans grew more cautious about the future.
The Conference Board said its Consumer Confidence Index ticked up 0.8 points to 91.8 in March from 91.0 in February. The gain was largely fueled by a stronger assessment of present conditions, while expectations for the months ahead deteriorated.
The Present Situation Index jumped 4.6 points to 123.3, reflecting improved views of business activity and the labor market. By contrast, the Expectations Index fell 1.7 points to 70.9well below the threshold of 80 that often signals a potential recession ahead.
Consumer confidence ticked up again in March, as a modest improvement in consumers' views of current conditions outweighed a slight downshift in expectations for the future, said Dana M. Peterson, chief economist at The Conference Board.
While March was a slight improvement, confidence remains on a broader downward trajectory that dates back to 2021. Underlying the mixed results are persistent concerns about rising prices, particularly as higher oil costs and tariff-related price pressures filter through the economy.
Inflation expectations are up
Inflation expectations surged in March to levels not seen since August 2025, when consumers were bracing for additional tariffs. At the same time, more Americans now expect interest rates to rise over the next year, and optimism about stock market gains has declined sharply.
Consumers also expressed growing anxiety about the broader economic outlook. The share of respondents who believe a recession is very likely in the next 12 months increased, while fewer said a downturn was unlikely.
Spending intentions reflect that caution. While interest in major purchases like cars and furniture remains relatively resilient, more consumers are shifting toward saying no when asked about big-ticket buying plans. Preferences continue to favor used cars over new ones, and existing homes over new construction.
Prioritizing essentials
At the same time, households are prioritizing essentials and lower-cost activities. Spending plans for services declined across most categories, with consumers focusing on necessities such as utilities and healthcare while cutting back on discretionary expenses like travel. Foreign travel plans dropped sharply, likely due to geopolitical tensions, while domestic travel held steadier.
Demographic data showed uneven sentiment. Younger consumers remained the most optimistic, while those 55 and older were the least confident. Millennials were the only age group to report improved confidence in March, while most income groups saw declines.
Survey responses highlighted the dominant concerns: rising costs, economic uncertainty, and geopolitical tensions. Mentions of oil prices and conflict increased significantly during the survey period, underscoring the impact of global events on household sentiment.
Overall, while current conditions appear to be stabilizing, the outlook suggests consumers remain warybalancing a still-solid present against a more uncertain future.
Posted: 2026-04-01 11:43:07
