The State of the Economy for March 2025

In March, consumer confidence saw its fourth month-on-month decline, with people’s assessment of current business and labor market conditions, plus their short-term outlook for income, business and labor market conditions, all dropping.    Crucially, consumers’ optimism about future income, which had held up strongly in recent months, largely vanished, which suggests that worries about the wider economy and labor market have started to spread to people’s assessments of their personal situations.    Yelena Shulyatyeva, Senior Economist,and Stephanie Guichard, Senior Economist of Global Indicators, both of The Conference Board, unpack what’s behind declining consumer sentiment, including survey respondents' write-in responses, and how it could shape consumer spending and US economic growth this year.    (01:49) Detailed Breakdown of Consumer Expectations (03:24) Impact of Market Volatility (05:44) Inflation Expectations and Consumer Sentiment (06:56) Tariffs and Their Influence on Consumer Views (08:25) Positive Highlights from the Survey (14:27) Federal Reserve's Potential Actions (17:53) Key Indicators to Watch Moving Forward   For more from The Conference Board:  US Consumer Confidence Tumbled Again in March  Download the full Consumer Confidence Survey Report  How Badly Will Uncertainty Affect US GDP Growth in 2025?