The Conference Board's preliminary Consumer Expectations Index fell in March to its lowest in 12 years, to below a threshold that "usually signals" a recession ahead.
The Expectations Index, based on the short-term outlook for income, business and labor-market conditions in the US, dropped 9.6 points to 65.2, the lowest level in 12 years and "well below the threshold of 80 that usually signals a recession ahead," according to the survey.
The headline Consumer Confidence index fell by 7.2 points to 92.9 in March, marking a fourth month of declines. The Present Situation Index, reflecting consumer assessments of current business and labor-market conditions, fell by 3.6 points to 134.5. The survey cutoff date for preliminary results was 19 March.
US consumers' expectations were "especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low," according to the report.
Average 12-month inflation expectations rose to 6.2pc in March from 5.8pc in February "... as consumers remained concerned about high prices for key household staples like eggs and the impact of tariffs."
"Comments on the current (US) administration and its policies, both positive and negative, dominated consumers' write-in responses," the report said.
