U.S. Consumer Confidence Fell in March to Lowest Since 2017

(Bloomberg) -- U.S. consumer confidence slumped in March to the lowest level since mid-2017, even before the worst of this month’s layoffs spread through the economy as more businesses closed.

The Conference Board’s index fell 12.6 points, the most since 2011, to 120, according to a figures issued Tuesday that were higher than the median estimate in a Bloomberg survey of economists that called for a decline to 110. The cutoff date for the results was March 19, which was before the job cuts during the month intensified.

The group’s subindex of expectations, based on consumers’ short-term outlook for income, business and labor market conditions, fell to the lowest level since October 2016. Attitudes about current economic conditions only eased somewhat, with the group’s subindex slumping to the lowest since November.

“However, the intensification of Covid-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs,” Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement. “March’s decline in confidence is more in line with a severe contraction -- rather than a temporary shock -- and further declines are sure to follow.”

Store closures and widespread layoffs prompted consumers to dial back buying plans as well. Retailers from Macy’s Inc. to Urban Outfitters Inc. are halting pay for much of their workforce. The wave of furloughs brings the total number of employees who are out a paycheck at major U.S. chains to more than 500,000, data compiled by Bloomberg show.

Sentiment among the lowest income earners suffered the largest decline in March, the data showed. An index of confidence among households with incomes less than $15,000 tumbled 31.4 points, the most in records back to 1980.

While the broad confidence gauge fell less than forecast, buying plans deteriorated, with fewer respondents indicating they’ll purchase cars, homes or major appliances in the next six months.

Meanwhile, the largest share of consumers in 11 years expect interest rates to be lower in the coming year. The biggest share of respondents since 2012 project stock prices will be weaker.

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