U.S. Consumer Confidence Hits 12-Year Low as Spending Paradoxically Rises

Economic uncertainty, driven by inflation expectations and tariff policies under President Trump, fuels 'doom spending' despite declining sentiment.

Consumer confidence in March 2025 has fallen to its lowest level since 2013, with significant declines reported by the University of Michigan and the Conference Board.
Despite pessimism, U.S. consumer spending increased by 0.4% in February, with personal income also rising by 0.8%.
A growing trend of 'doom spending' is emerging, as Americans make impulsive purchases out of fear of future price hikes and economic instability.
Rising inflation expectations, with a one-percentage-point jump in February, and ongoing tariff volatility contribute to heightened economic anxiety.
Analysts highlight a persistent disconnect between negative consumer sentiment and strong economic data, underscoring the complex interplay of psychological and political factors.