Recent surveys indicate that American confidence in the country's economy is waning due to uncertainties surrounding President Donald Trump's policies and increased prices affecting consumer sentiment.

The consumer confidence index, maintained by the Conference Board, dropped to 92.9 in March compared to 100.1 in February, marking its lowest level in over four years. The expectations index, reflecting consumers' short-term views on income, business, and job market conditions, decreased to 65.2 from 72.9, staying below the critical threshold of 80 that typically precedes a recession for two consecutive months.

The expectations index hit a 12-year low mainly because consumers foresee their financial situations deteriorating to the worst level in more than two years.

Yelena Shulyatyeva, a Senior US Economist at The Conference Board, highlighted the decline in consumers' financial expectations as a notable trend. She suggested that the pervasive economic uncertainty is eroding individuals' optimism about their future financial well-being.

Several recent reports have depicted a gloomier economic outlook among consumers, raising concerns that a pessimistic sentiment might lead to reduced spending. Federal Reserve Chair, Jerome Powell, and economists are cautious about interpreting soft survey data, like the consumer confidence index, as directly translating into hard economic indicators such as actual consumer spending.

Despite some concerns about a less robust growth outlook for the US economy than initially anticipated, economists generally do not foresee a substantial slowdown at present. According to a note by Morgan Stanley's chief global economist, previous worries about a recession might have been exaggerated, especially following the reversal of January's retail sales decline with a rebound in February.