US consumer confidence plunged to the lowest level in more than four years in March, with households fearing a recession in the future and higher inflation because of tariffs.

The Conference Board said on Tuesday that write-in responses to the survey showed “worries about the impact of trade policies and tariffs in particular are on the rise,” adding: “There were also more references than usual to economic and policy uncertainty.”

The survey’s measure of future expectations hit a 12-year low and breached a level associated with an economic downturn.

Separately on Tuesday, ratings agency Moody’s cautioned that the US’s fiscal strength is on track for a continued multi-year decline, as budget deficits widen and debt becomes less affordable. In a report, it said the country’s fiscal health deteriorated further since Moody’s lowered its outlook on the US triple-A rating in November 2023.

Donald Trump’s on-and-off again tariffs have been panned by economists for sowing confusion and uncertainty that they said was making it challenging for businesses to plan ahead, to the detriment of the economy.

The US president on Monday indicated that not all of his threatened duties would be imposed on 2 April and some countries may get breaks, but at the same time said tariffs on imported automobiles were coming soon.

“Consumers are rattled,” said Carl Weinberg, chief economist at High Frequency Economics. “At great personal risk, we will opine that the chaos in Washington has something to do with this. The decline in consumer sentiment since the November election can no longer be written off as a coincidence.”

The Conference Board’s consumer confidence index tumbled 7.2 points to 92.9 this month, the lowest level since January 2021. Economists polled by Reuters had forecast the index sliding to 94.0. The fourth straight monthly decline in confidence mirrored a similar deterioration in the University of Michigan’s consumer sentiment measure, which has also erased all the gains notched in the aftermath of Trump’s election victory in November.

The drop in confidence was driven by consumers over 55-years-old. Morale in the 35-55 year age cohort also worsened. But confidence rose slightly among consumers under 35 years. Confidence slumped across income groups, with the exception of households earning more than $125,000 a year. Consumers had over the past few months been generally upbeat about future income.

“Consumers’ optimism about future income … largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” said Stephanie Guichard, senior economist, Global Indicators, at the Conference Board.

The survey’s expectations index, based on consumers’ short-term outlook for income, business and labor market conditions, dropped 9.6 points to 65.2 – the lowest level since March 2013 and well below the threshold of 80 that usually signals a recession ahead. The share of consumers anticipating a recession over the next 12 months held steady at a nine-month high.

Reuters contributed reporting