(Reuters) – The confidence of American consumer fell in April to its lowest level for almost five years, while the growing concerns concerning customs duties weigh on economic prospects.

The monthly survey of the Conference Board published on Tuesday shows that the trust index has established this month at 86.0, the lowest figure since May 2020, against 93.9 (revised) in March.

The consensus of the economists interviewed by Reuters provided for an index at 87.5.

The current situation index, based on consumer assessment of current business and labor market conditions, has dropped from 0.9 points to 133.5.

The expectations index, based on the short -term perspectives of consumers in terms of income, business and labor market conditions, has dropped from 12.5 points to 54.4 – the lowest level since October 2011 and well below the 80 threshold which generally signals an upcoming recession.

“Consumer confidence has dropped for the fifth consecutive month in April, falling at levels never seen since the start of the Cavid-19 pandemic,” said Stephanie Guichard, economist at Conference Board.

The American trade department should announce Wednesday that the growth of gross domestic product (GDP) of the world’s leading economic power has slowed heavily in the first quarter, due to an increase in imports, companies having been quick to import goods to avoid higher costs linked to customs duties announced by the government.

According to a Reuters survey, the gross domestic product probably increased to an annualized rate of 0.3% in the January quarter-March, which would be the lowest rate since the second quarter of 2022.

Consumer spending has also slowed down considerably, hampered by always high inflation and concerns about the impact of customs duties on the economy, which has prompted certain households to reduce their consumption to preserve their savings.

(Written by Lucia Mutikani; Diana Mandiá, edited by Augustin Turpin)

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